Published: 9th September 2013
Experts in the overseas property market predict that 2011 will see large increases in investment in the Chinese property market as investors seek to capitalise on a huge demand for residential property in the country. Raymond Lee, Chief Executive Officer of Savilles Greater China went on to state that "The general consensus is that 2011 is a prime time to invest in properties and foreign real estate funds have been finding a legal fund vehicle that allows them to get their money into the country."
Indeed, the figures backup the growth in optimism throughout the Chinese property market. In the first two months of 2011, the level of foreign investment grew by 27% year-on-year to just under $8 billion, of which $4.15 billion was in the property sector. Expanding those figures out on an annual basis sees an increase of over 50% year-on-year.
On the back of this demand the real growth and opportunity for investors to date has been through institutional channels, and a number of new funds have been launched in response to the growth in demand. Grosvenor Asia Pacific is one such company. They are currently seeking to raise around $270 million for a new fund which will invest in property in China as an integral part of its overall Asian strategy.
The Chinese government is currently seeking to put legislation in place which will limit the levels of foreign direct investment in the Chinese property market at an individual level. Only time will tell what impact the legislation will have, however with demand increasing at such a rate, interest in the market seems set to increase the foreseeable future.