An undeveloped plot of land in Beijing. (File photo/Xinhua)
Foreign property developers have been stepping up their efforts in China's market, buying premium properties and land plots in Beijing and Shanghai, suggesting overseas investors are predicting a healthy outlook for China's property market and the country's commercial property may grow rapidly in the near future.
Singapore-based Perennial China Retail Trust has formed a consortium with investment firm Beijing Meirongjia to place the winning bid for of a plot of land in Beijing's Tongzhou district for 905 million yuan (US$143 million) on Tuesday. The consortium also bought another plot in the same district for 821 million yuan (US$130 million) on Monday, according to Chinese-language newspaper Beijing Business Today.
In Shanghai, US-based asset management group Blackstone also confirmed that it bought 25 floors of the Huamin Imperial Tower for 1.8 billion yuan (US$285 million). The skyscraper has 68 floors and is a complex hosting businesses, hotel and retail outlets.
Foreign property developers such as CapitaMalls Asia have also expanded their business in China. The company's CEO has said the value of the company will increase substantially within five years, according to Beijing Business Today.
Financial consultant and market researcher Adfaith said developers from outside mainland China do not expand rapidly without careful planning beforehand. Businesses from Hong Kong, Singapore and the United States pay attention to quality and returns and do not buy plots of land on a large scale like Chinese property developers.
Perennial China Retail Trust has acquired existed commercial properties worth over 6 million yuan (US$951,000) in Shenyang and Chengdu last year. The property it bought in Beijing was the first time it has been involved in developing a project from scratch, according to Beijing Business Today.
Beijing Meirongjia 北京美融加投資有限公司