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Should Foreign Real Estate Investment be Controlled in China?

Author/s: Nelson Chan

Date Published: 1/01/2007

Published in: Volume 13 - 2007 Issue 4 (pages 473 - 492)

Abstract

Housing prices in China has been increasing rapidly in recent years. While local speculators are blamed for the escalating house prices, foreign real estate investors are also regarded as accomplices for causing the problem. New measures known as the Opinions on Regulating Market Access and Management of Foreign Investment in China’s Real Estate Market were introduced to restrict foreign real estate investment in the country. This paper attempts to examine the justification of the control and its impact on foreign investors. The investigation shows that foreign real estate investment is a tiny portion of the total real estate investment in China and has not cause a threat to the market. The scale of foreign investment does not justify the introduction of the controls.

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Keywords

Control Measures - Foreign Investment - House Prices - Real Estate Market

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