The (geo)politics of land and foreign real estate investment in China: the case of Hong Kong FDI

Abstract

Market reforms and the relaxation of rules governing inbound investment have contributed to the growth of foreign investment in Chinese real estate. Although the property sector remains one of the most tightly regulated, property developers from Greater China have enjoyed relative success in the mainland market. Conventional explanations of such investment outcomes have often drawn attention to economic complementaries and cultural proximities. By tracing the development of Hong Kong investment in China's real estate from the late 1970s to the present, this paper demonstrates the importance of considering (geo)politics at both the national and ground levels in analysing bilateral economic relations. The geopolitical prerogatives of national sovereignty structure economic interactions between the Chinese state and the Special Administrative Region, while popular politics from the ground level up interacts with state-level geopolitics to affect and change policy outcomes. The shifting dynamics demonstrate that the cultural meaning and value of foreign capital are not static or fixed but rather open to continuous re-negotiation and contestation.

Looking for big ‘fry’: The motives and methods of middle-class international property investors

“…Thus, through the experience of buying and selling properties locally, many Hongkongers became familiar with the mechanics of purchasing apartments in other parts of the world. Kan (2017) highlights earlier trends of property investment from Hong Kong to mainland China since the late 1970s and argues that the economic interactions between the two regions can be understood through the geopolitics of sovereignty and cultural identity. Similarly, research by Rogers et al (2015) has explored the ways in which Hong Kong and Chinese investors buy properties in Sydney and Melbourne, which have been linked to affordability issues for residents.…”

The Success Factor of Public-Private Partnerships in Malaysia and Nigeria's Housing Sectors

“…Due to the absence of openness and excellent leadership in Nigeria's PPP procurement and distribution of duties to the parties engaged in the agreement, the criteria are regarded as highly significant. The allotment of land under the plan was dependent on personal contacts with the FCT administrator rather than due procedure (Kan, 2021). Nigeria's political system is unstable owing to frequent changes in FCT ministers and the PPP policy, which is why the element 'strong democratic structures' is graded high (0.077).…”

What influence domestic and overseas developers’ decisions?

“…Overseas developers tend to focus on suburban markets because of asymmetric information in local markets (Walker and McKinnell, 1995; Wong and Walker, 2000). After three decades investing and developing property in China, Hong Kong developers consider local policy the dominant factor to affect their decision (Kan, 2017). Mauck and Price (2015) argued that different determinants operate between domestic and overseas property investors.…”