Beijing’s real estate market heats up
Beijing’s commercial real estate market is on pace for a record year, with foreign investors swooping to pick up assets from domestic firms contending with tighter financial policies and economic uncertainty.
Commercial property investment in the Chinese capital hit approximately 25 billion yuan (US$3.5 billion) in the first six months of 2019, compared to the 38 billion yuan for the whole of 2018, according to data from JLL.
“Market conditions have been more favourable for foreign investors than previously,” says Mi Yang, Head of Research for Beijing & North China at JLL. “Although there has been some recent loosening in policy, the tight-monetary environment remains largely in place.”
The Chinese government imposed capital controls at the end of 2016 in a bid to boost the domestic economy. Policies included restrictions on Chinese investment in foreign companies and overseas real estate, as well as stricter limits on issuing bonds and loans denominated in foreign currency.