The market share of foreign investment in Chinese property fell in 2008 to 26.3 percent from 56.9 percent the previous year, according to the latest research from real estate analyst DTZ. Overall, real estate investments in China fell by 46 percent with 508 major transactions worth approximately US$34 billion for all of 2008.
Of these major transactions for 2008, 432 – or 85 percent – were land transactions meant for property development while the remaining 15 percent were strata-title or en-block acquisitions of existing developed property. The residential sector had the most strata-title and en-block transactions with 34 deals worth some $955 million. The office sector increased the number of deals done on existing property via strata-title and en-block transactions with a total value of nearly $4 billion, almost double the previous year.
While the residential and office sectors saw improvement in these types of transactions, the retail, mixed-use and industrial sectors saw a drop in transactions. Beijing led the way with $3.3 billion in investment via strata-title and en-block transactions while Tianjin and Wuhan also saw positive growth in this area of investment.
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