By Jiang Hongqiao & Cheng Zhiyun
Published: 2007-11-13
This year alone, the government has issued various restricting policies, including one meant to enhance the management and scrutiny of direct foreign investment in real estate, and a list of approved foreign-funded property development projects. This latest guide highlights continuing concerns over supply and demand for residential units.

Zhang Zheng, from SEB Immobilien-Investment, believes that control measures imposed on the real estate industry in recent years have been effective, especially in limiting foreigners from acquiring assets. A series of control policies have forced foreign investors to retain funding operations for a longer period, thus, reducing the tendency of market manipulation.

However, Zhang also believes that such regulations are double edged; they can also limit the liquidity standing of developers and affect the quantity and variety of products in the market.

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