New government regulations force many foreign investors to transfer capital from Mainland real estate sector or find new developers to take over on-hand projects, Beijing Business Journal reported.   Since the new regulations are announced, foreign investment agents are in a hurry to find local developers to take over initial foreign invested projects.   Experts at DTZ China said that the new regulations that are currently under review of te State Council aim at regulating foreign investor’s financing and capital input in the real estate sector. When non-Chinese or foreign firms and individuals want to purchase property not of self usage, they are required to follow additional registration procedures.   However, this differs from the existing foreign investment channels of obtaining private investment or allocating listed companies’ funding. Such capital does not come from a substantial company established inside Mainland but only a cooperative investment, development and operation from the outside. DTZ’s director of investment department, Cao Nianguo, pointed out that it is a fast and simple investment form that brings in short-term profit return.   In 2005, foreign capital invested in developing Mainland property amounted to 34 million US dollars. Tere were 2119 foreign involved projects involved with contracts worth 194 million US dollars.   Cao estimated an accelerate leverage from foreign investors that would lead to increased supply in the sector. Reduction of foreign capital entering the Chinese market is expected. Since there will be more supply than demand in the short-term, prices would go down.   As a result of tightened control over entrance of foreign investment, speculative investment would be reduced. Cooperation between foreign investors and Mainland developers would be a new trend in the sector.