Latest News:  
Beijing   Shower/Overcast    28 / 22 ℃  City Forecast

English>>China Business

Foreign real estate firm sells stakes

By Liang Fei (Global Times)

13:32, September 07, 2012

Treasury Holdings Group, a leading real estate developer in Ireland, has sold its stake in two of its Chinese subsidiaries in a bid to avoid growing risks in China's real estate sector, China Times reported Thursday, citing industry sources with knowledge of the matter.

The report said that Treasury Holdings had sold the stakes in the two subsidiaries to one of the Irish company's senior executives, at a price of 2.23 million euros ($2.82 million).

The two subsidiaries had bought several properties in Shanghai between 2007 and 2011, but the report said that Treasury Holdings had been planning to sell the properties before it announced the sale of the two subsidiaries.

Recent media reports also said that US developer Tishman Speyer has been considering selling a piece of land in Shanghai that is worth 4.8 billion yuan ($756.75 million).

Even though the company denied the reports were true, the rumors have further shaken confidence in China's real estate sector.

"The foreign investors have sensed risks resulting from the government's policy toward the real estate sector, so some of them have chosen to withdraw," Yang Shaofeng, general manager of Beijing Lianda Sifang Real Estate Consultancy, told the Global Times.

Yang noted that foreign investors can get high returns if they choose to quit the domestic market now, as most of them entered China around 2004, when prices were one-third of the current level.

A report in Shanghai Securities News last week said that foreign investment in the real estate sector this year may amount to just 40 billion yuan, compared to around 80 billion yuan in 2011 and 2010.

But Yang noted that even if foreign companies all withdraw from China's real estate industry, the sector will not be affected that much, given that foreign investment accounts for a very small percentage of the total.

According to data from the National Bureau of Statistics, in the first seven months this year, investment in the sector reached 3.67 trillion yuan. This represents growth of 15.4 percent year-on-year, which is 1.2 percentage points lower than for the first six months.

"The government's tightening policies will surely affect investors' confidence, which may trigger developer's moves to balance their investment portfolio, but a massive withdrawal from China's real estate sector is not very likely," Liu Yuan, research director at the Shanghai branch of Centaline China Real Estate, told the Global Times.

"Tishman Speyer still has projects in Tianjin and Chengdu. It is an exaggeration to say that foreign capital is fleeing from China," noted Liu, who also said housing prices will remain stable and that the sector is unlikely to worsen.

Email|Print|Comments(Editor:厉振羽、张洪宇)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. APF soldiers conduct anti-terrorism training

  2. Moscow holds salon displaying auto trends

  3. Diaoyu row hurts Japanese car sales in China

  4. Mantries to woo potential mates by wearing homemade 'chastity belt'

  5. Spectacular! When magma enters into sea

  6. Spanish beauty sexy show

Most Popular

Opinions

  1. ASEAN 'must not take sides in disputes'
  2. Commentary: Asian SMEs must plan for crisis
  3. US firms poison reputations of China start-ups
  4. Exams still fairest way for kids' school selection
  5. Quality better for box office than quotas
  6. Don’t hand over judgment to foreign media
  7. China, Japan can find path to more stable future
  8. Editorial: FDI rise possible

What's happening in China

Freshmen receive etiquette training in E China

  1. Two dead in Beijing railway stabbing
  2. Coca Cola to rebuild image through public welfare
  3. Booklet tells parents to 'prevent' homosexuality
  4. Dog's death prompts pet safety plea for planes
  5. 3 smugglers' sentences stir debate

China Features

  1. Exclusive:A probe into GM rice test
  2. How much we continue to pay for 'face saving? '
  3. Entering China's northernmost village
  4. Italy makes efforts to attract Chinese students
  5. Chinese economy not to suffer a hard landing

PD Online Data

  1. Ministry of Water Resources
  2. Ministry of Railways
  3. People's Bank of China
  4. Ministry of Health
  5. Ministry of Culture