Wednesday, April 1, 2009

Funds Wary of Risk in China Real Estate

Overall, real estate in the country remains too risky, illiquid and poorly developed to expect significant overseas investment at a time when bargains are emerging in more transparent markets elsewhere, the executives said.

"International investors are taking their money home," said Richard Price, regional chief executive officer of ING Real Estate Investment Management.

He said well-known complications of doing property deals in China "make people pause" about committing money now.

Falling property prices and a collapse in transactions were a major cause of the slowdown in China's economic growth last year. Foreign investors have been a relatively tiny force in the property market, but they tend to have a disproportionate influence on the market and on policymaking.

China's government has clamped down on speculation in residential apartment prices in recent years partly by pinching foreign investors with new hurdles.

China Properties News

Craigslist beijing real estate