Irish invest €7m in Beijing apartments

More than 50 Irish people have invested a total of €7 million in residential property in the Chinese capital, Beijing, during the last six months.

Investors in Asia (IIA), a company set up to advise Irish people on buying property in China, said yesterday that it has assisted more than 50 Irish people in buying property in the world's fastest growing economy.

IIA said that the individuals involved spent a total of €7 million on buying apartments in Beijing.

The city is currently at the height of a building boom driven by the fact that it will host the Olympics in 2008 and the World Expo two years later.

High-quality properties begin at around €120,000 to €140,000 for a one-bedroom apartment, and values are growing at the rate of 15 per cent to 20 per cent a year, according to IIA.

The investors are largely private individuals who have already bought property overseas and are looking for new opportunities further afield.

IIA director, Andrew Paul, said that the firm was dealing with "huge" number of enquiries about investing in the far eastern country. "There is massive interest in China with the Olympics being held there in 2008 and growth rates of over 10 per cent," he said.

The value of properties in one of the developments that IIA has been promoting has doubled since 2001 , the company said yesterday.

Property prices are growing so rapidly in China that the government there has taken a number of steps to cool the market.

These include a recent move to limit overseas individuals from buying real estate in the country.

However, IIA says that this is aimed at limiting purchases by China's prosperous 100 million ex-pat population rather than at general overseas investors. The firm has altered its structures to deal with the change.

The company now advises people to buy through Chinese-registered businesses rather than as individuals direct from property developers. IIA says that this suits syndicated buying and is tax-efficient.

Mr Paul and his two colleagues, Patrick Parsons and Paul O'Driscoll established IIA last October.

Mr Paul is formerly of building company, John Paul Construction, and Mr O'Driscoll is the former managing director of Sino Link Property Company.

The business has offices in Beijing and Dublin.