The real estate market is booming in China since 2003, thus they bring lots of inquiry to construction material.
Previous Hong Kong media reported that foreign investors in real estate investment cooling, interested in logistics industry.
Due to the rise of the practice of the measures for purchasing and risk, the activities of foreign investors in the mainland property market fell to their lowest level in a decade.
According to the number of National Statistics Bureau, the first two months of this year, foreign investment in the mainland property market share fell to 0.08%, is the low of the ten years at least.
Paul Hastings, a law firm to focus on the real estate industry partner David Seinfeld, said, “I don’t think that foreigners are losing interest in”, but as the economic slowdown, transition challenges looming, “people have become more realistic.
To curb runaway housing prices rise, China to strengthen the examination of foreign investment in real estate industry, requiring foreign companies to set up entity for each project in the mainland, pay higher registered capital, and shall not be shareholders or lender, borrowing from abroad.
The National Statistics Bureau’s data show that after the global financial crisis, foreign investment of real estate market share has been less than 1%, even in the peak has never been more than 2% of the real estate industry financing source.
Xu Weibin., the China partner of Kelisi LTD Construction and real estate consulting firm,. said after the global financial crisis, such as Gaosheng investment Banks out of the mainland property market.But other foreign investors stayed, including sovereign wealth funds, pension funds and private equity funds, and some investors are increasing investment in China’s real estate market. Xu said: “no one expected China’s gross domestic product (GDP) growth rate will reach 10%, but 7% – 8% of the growth is still the dream of many other countries.”
Along with the gradually reduce reliance on exports from the mainland, intensify efforts to promote domestic consumption, foreign investor interest in the logistics industry on the rise, because the government seems not belongs to real estate investment, thus are less restrictions. U.S. private equity firm Carlyle group and estate consulting firm Thomson group announced to establish strategic cooperation platform with Shanghai last year, operating 17 investment logistics warehouse in China.
Seinfeld said, as China gradually relaxed monetary policy, the real estate market may usher in prosperity once again.
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