Foreign Real Estate Firm to Invest in China
When the government begins loosening its restrictions on property measures, CBRE Global Investors may make its first investment in China’s housing projects. The world largest commercial real estate brokerage has already mediated talks with its Chinese partners and local governments in it plans to purchase a site for its residential development projects.
This year, China raised down payment requirements, imposed housing purchase restrictions in some cities and raised mortgage rates. This was done to help curb inflation and make housing affordable for average Chinese citizens. Experts are already seeing inflation in China stabilizing, which might allow the government to ease credit by the middle or end of next year.
This year CBRE Global Investors acquired a majority holding of ING Groep NV real estate investment business, and with the two companies combined it has invested around US$ 1.5 billion in 15 Chinese residential housing projects. CBRE together with a developer in China will jointly bid for land where CBRE will hold 50 percent of the stake of the development ventures.