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Opportunities and challenges
With the continual growth of the Chinese economy and rapid pace of urbanisation, the favorable conditions have created a significant opportunity for both domestic and foreign investors. Participation in the real estate market can take various forms, including: direct property ownership, investment in listed property companies, REIT investments and private equity funds. In each case, investors need to be mindful of the financial, regulatory and tax issues that can have a significant impact on the success of an investment.
Issues to be considered by real estate capital providers should generally include:
- the applicable laws and legal procedures
- the regulatory restrictions affecting real estate transactions and the associated complications in executing transactions
- the tax costs associated with real estate and structuring options to optimize the efficiency of the investment
- restrictions on the financing of investments and the repatriation of funds.
How Deloitte can help
Our Real Estate Industry Practice teams regularly advise investors on both the financial and tax implications of real estate investment transactions. The breadth and depth of our practice ensures that we are able to keep in close touch with new tax changes, accounting and regulatory developments; therefore, we are able to help our clients effectively manage the risks created by the continuously changing rules, whether it be in the context of structuring a fund, or providing advice on an acquisition or new investment project.
We acted as the reporting accountants for the first REIT of properties located in Hong Kong, which was successfully listed in Singapore. More about REITs.
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Featured insights
- China real estate investment handbook 2013 edition
This 2013 edition summarises the updates on taxation and accounting treatments for real estate investment, key changes, risks and opportunities. Some new insights, such as business trusts, outbound investment considerations are included. - Accounting for investment properties under construction - A practical guide
Deloitte China Real Estate Industry Practice launched its Accounting for Investment Properties under Construction – A Practical Guide to serve as a useful and practical resource in understanding the amended standard.