The nation's property market would receive a big boost should the government allow Chinese capital to invest in the nation, but the scenario seems unlikely to happen in the near future, property market specialists said yesterday.
With growing economic power and capital available, Chinese companies have been increasing their investments in overseas markets in recent years, Chris Brooke, greater China region managing director at CB Richard Ellis Ltd (CBRE), said at a forum yesterday.
The property market in Taiwan is attractive to Chinese capital because of similarities in language and culture, its well-managed infrastructure, capability in high-tech manufacturing and superior geographic location, Brooke said.
Even though the ban on Chinese investment has not yet been lifted, many private Chinese funds have entered Taiwan using companies in a third country, Brooke said.
Citing Hong Kong as an example, the territory's real estate market has taken off following the implementation of the Closer Economic Partnership Arrangement between China and Hong Kong in 2004.
The agreement allowed Chinese individuals to travel to Hong Kong, which has consequently received a boost in many sectors including property, retail, tourism, telecommunication and transportation.
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