Total investment in Chinese real estate during the first quarter grew 9.1 percent to 1,929 billion yuan ($280 billion; €263 billion), according to data released from China’s National Bureau of Statistics on Monday.
Total deals for commercial buildings grew 25.1 percent while residential deals were up by 20.2 percent.
The data also revealed that the speed of construction starts quickened in spite of an intensified effort from the government to overbuying in the real estate market. For instance, back in March Chinese regulators introduced rules to curb the purchase of new commercial property in Beijing by individuals in order to cool a hot property market.
Yet, the land space purchased for real estate development was 407 million square feet, up by 5.7 percent year on year. The funds in place for these real estate development enterprises in Q1 reached 3,566 billion yuan, up by 11.5 percent year on year.
Both overseas and domestic capital sources have been deploying capital in China. Earlier this week New York-based developer Tishman Speyer signed a new strategic partnership agreement with China’s CreditEase Wealth Management to invest 10 billion yuan over the next three years.
A JLL study last month added that Chinese investors deployed $29.1 billion into domestic real estate assets in 2016, a 50 percent increase year-on-year.