Determinants of Foreign Direct Investment in China's Real Estate Market

Since 2000, foreign direct investment in China's real estate industry has been increasing year by year. Based on the theory of direct investment in the service industry and previous research and analysis, this paper conducts a quantitative study on determinants affecting foreign direct investment in China's real estate market, including: market size, exchange rate, market openness, labor cost, land cost, financing cost, etc. Based on the empirical analysis, this paper draws conclusions and gives some policy recommendations: first, the development of various regions in China is different, and effective policies should be taken to attract FDI in the real estate market according to local conditions; second, the government should create a fair and reasonable competition environment. Keywords—real estate; foreign direct investment; determinants