A plan to increase property units is now being evaluated by the Citigroup to increase the company's investment in China's real estate markets. A Citigroup executive announced on Tuesday that the company is planning to increase its investment in China's real estate markets tenfold to $800 million in the next three years as economic growth fuels demand for offices, shops and homes.

Stephen Coyle, chief investment strategist of Citigroup Property Investors, said that the company will focus on  the eastern part of China to gain from the increasing demand brought by foreign investment inflows in the area. He said that the increase applies to greater China, including Taiwan, Hong Kong and Macao.

Coyle said that Citigroup Property Investors would buy office, retail and industrial properties. The unit will also invest in residential projects in "secondary cities" in mainland China where housing prices have more potential to rise. According to real estate consultant Colliers International, Citigroup spent $50 million for a 75% stake in Shanghai developer Yongxin Group in 2005.

By M. Sese
http://realestatepress.org