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US real estate firm to sell off land in Shanghai

  • Staff Reporter
  • 2012-09-03
  • 17:44 (GMT+8)
The continued sell-off of property by foreign real estate agencies could be a boon for China's domestic housing prices. (File photo/Xinhua)

The continued sell-off of property by foreign real estate agencies could be a boon for China's domestic housing prices. (File photo/Xinhua)

Tishman Speyer, a US-based real estate agency, is again planning to sell its other properties in China, this time two pieces of land in New Jiangwan in Shanghai.

The two plots, being sold for commercial purposes, are worth 1.6 billion yuan (US$252 million) and 3.2 billion yuan (US$505 million), respectively, according to state broadcaster China National Radio.

The move could be a sign that many foreign real estate companies have been withdrawing from China due to the current cooling systems still in place by the government, analysts said.

Some analysts said that the move was bad news for China's property market, along with the transference and discounted sales of land, while others said the move was related to the uncertainty of the global economy, which has pushed foreign real estate companies to downsize their businesses.

Some of analysts said that the move was a normal operation for foreign companies, as their goals were for short-term profit followed by the selling off of large pieces of property. The largest US real estate company has raked in money since the company entered China seven years ago, coming in right when China relaxed its monetary policy to fight the financial crisis and the real estate market peaked twice.

The withdrawal of foreign property companies could contribute to halting the 10-year housing price highs in the Chinese real estate market. Reasonable prices for houses could start emerging soon.

Who's Who

  • Liu Yunshan (劉雲山)

    Liu Yunshan (劉雲山)

    Liu is first secretary of the Central Secretariat of the Communist Party of China and a newly elected member of the Politburo Standing Committee. ...