Institutional buyers to double China bet
(International Herald Tribune)
Updated: 2006-07-13 14:25 Overseas institutional
investors like Morgan Stanley and Goldman Sachs Group are expected to nearly
double their spending on real estate in China this year to US$7 billion,
according to Jones Lang LaSalle.
"Overseas institutions are keen on
long-term returns, so it's a good time to enter the market now, with some
negative information damping prices and buying interest," Michael Hart, director
of China research for Jones Lang LaSalle, said
Wednesday.
First-half sales to overseas institutions amounted to 70
percent of last year's total of US$3.56 billion, according to Jones Lang
LaSalle. The company's forecast of as much as US$7 billion of investment in 2006
was partly based on sales already signed but yet to be announced, Hart
said.
Morgan Stanley bought two residential projects in Shanghai
for a combined US$187.5 million in April and June, according to Colliers
International, the real estate consultantcy. Goldman Sachs spent US$70 million
on an apartment project in Shanghai in April, Colliers said.
Jones
Lang LaSalle, based in Chicago, is the largest U.S. commercial real estate
broker.
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