Foreign Investment in Real Estate in China

By Hao Wang

[email protected]

With China's economic boom, the real estate market has developed at a fantastic speed within just a few years. From 2005, the property price increased in Shanghai, and other big cities followed suit, including Beijing, Guangzhou, and Shenzhen. This led to the overall rise in most big and medium-sized cities in China in 2007. For instance, in Shenzhen, property prices have been rising since early 2006, while in the first half of 2007, the average property price increased more than 50%. In some areas, prices even doubled within the first six months of the year. There are a number of elements which have contributed to the sharp rise of property prices in China, including an increase in foreign investment in the real estate market, property purchases by foreign invested enterprises and individuals in big cities, and the expectation of Rmb appreciation, among others.