Investors confronted with new hurdles as mainland curbs weigh on market sentiment
To buy or not to buy, that is the question...
Mainland property prices have delivered solid returns to investors in the first nine months of this year, rising as much as 30 per cent in the best-selling market of Shenzhen, according to property consultant DTZ.
And that was even before taking into account added exchange-rate gains for offshore buyers arising from the yuan's sustained appreciation.
By comparison, on the more volatile equity markets, A shares have recorded gains of 100 per cent and the Hong Kong property price index has registered a 37 per cent gain.
For many offshore investors including Hong Kong buyers, the investment arithmetic of putting money into a mainland property has understandably made compelling sense. Official data published by the National Bureau of Statistics show foreign direct investment in the mainland's property sector reached US$7.67 billion in the first half of this year, a 138 per cent jump from the same period last year.
