Foreign investment in the Chinese real estate sector soared to US$1.44 billion in the first half year, according to a report by consulting firm CB Richard Ellis.

 

The investment was 15 percent higher than for the whole of 2005, said the report carried by Wednesday's Shanghai Securities Daily.

 

The figure mainly refers to money used to purchase buildings and does not include purchases of land for real estate development.

 

Statistics show that capital from North America and North Asia represents the lion's share of the investments.

 

Last year, capital from North America accounted for 43 percent of investments in China's real estate properties. The figure rose to 51 percent in the first half year.

 

North Asian investment increased from last year's one percent to 24 percent in the first half year while capital from Southeast Asia dropped from last year's 36 percent to 19 percent, said the report.

 

Beijing and Shanghai remain the priority choices of foreign real estate investors. Beijing attracted 49 percent of the investment, followed by Shanghai which claimed 45 percent of the money.

 

The percentage of foreign investment in advanced residential buildings rose from last year's seven percent to 36 percent in the first half year.

 

Foreign capital still holds the largest share of investments in advanced office buildings -- 42 percent -- and 12 percent of retail and hotel investments.

 

Tighter requirements on investment programs and more complicated procedures will stop some purchases, said analysts with CB Richard Ellis.

 

(Xinhua News Agency October 26, 2006)