Foreign investors shift focus back to China's real estate market after investment restrictions eased
Real estate funds expected to boost interest in the mainland market after Beijing relaxes controls on investment and access to financing
Foreign investors and real estate funds are expected to reset their sights on the mainland property market in the next 12 months following Beijing's recent easing of rules on foreign investment in the sector.
While the relaxation announced last month may not be strong enough to have a significant impact on the huge mainland market, it could provide sufficient stimulus to boost foreign interest in the industry, according to property players.
"We will see an increase in foreign real estate investments, particularly in China's first and second-tier cities," said Natasha Ho, a managing partner at ProsPerfect Finance Advisor. "It is unlikely to have a huge impact on the overall market in the short run due to the small proportion of foreign capital accounts to the total real estate investment in China.
"The relaxation, however, may boost investors' confidence and create a positive impact on market sentiment."
The mainland real estate market attracted 18.5 billion yuan (HK$22.4 billion) in overseas investment in the first seven months of this year, down 24.5 per cent from the same period last year.
On August 19, six state agencies issued directives relaxing restrictions on foreign investment in the property market, representing a significant shift in the government's position.