Foreign investment in the Chinese real estate sector soared to US$1.44 billion in the first half of 2006, according to a report by consulting firm CB Richard Ellis.

The investment was 15 percent higher than for the whole of 2005, said the report carried by Wednesday's Shanghai Securities Daily.

This figure mainly refers to money used to purchase buildings and does not include real estate development purchases.

Statistics show that capital from North America and North Asia represents the lion's share of the investments. Last year alone, capital from North America accounted for 43 percent of investments in China's real estate properties, rising to 51 percent this year.

North Asian investment increased from last year's one percent to 24 percent in the first half of the year while capital from Southeast Asia dropped from last year's 36 percent to 19 percent, indicated the report.

Beijing and Shanghai remain the priority choices of foreign real estate investors with the capital attracting 49 percent of the investment, followed by Shanghai with 45 percent of the money.

The percentage of foreign investment in advanced residential buildings rose from seven percent to 36 percent. Foreign capital still holds the largest share of investments in advanced office buildings -- 42 percent -- and 12 percent of retail and hotel investments.

Tighter requirements on investment programs and more complicated procedures will halt some purchases, said analysts with CB Richard Ellis.

(Xinhua News Agency October 26, 2006)