First-quarter investment up 30pc to US$5.4b, says Deloitte
Foreign investors have not lost their appetite for mainland property despite the latest measures by the central government to cool investment, tax experts said.
Nancy Marsh, Deloitte China's real estate tax leader, said foreign investments in mainland property would not be adversely affected by measures targeting them because of the attractive returns of up to 30 per cent return in inner cities.
'So far, we have only seen one foreign institutional investor back out from the mainland as it failed to identity properties that could meet its target investment yield,' she said.
Overseas investors, particular those who had expanded into second- and third-tier cities, faced a new challenge when a circular jointly issued by the Ministry of Commerce and State Administration of Foreign Exchange in May urged local authorities to support Beijing's effort to slow foreign investment in the property market.
The circular announced tax investigations would be carried out on all municipal-level enterprises this month and next month, followed by a sample examination by provincial and state authorities from September to December.
The circular follows central government measures introduced last year to slow the level of foreign investment.