[photopress:Beijing_apartments.jpg,full,alignright]New regulations on foreigners and overseas Chinese buying used property in Beijing are expected to be promulgated within a month which will result in a real-name house purchasing system. Real estate agencies, insiders and experts believe a policy on second-hand housing will be drawn up shortly because the regulations issued in July have already pointed potential overseas house buyers towards the second-hand market.
Luo Yu, marketing manager of Xinyitian Real Estate Agent, a Beijing-based national real estate agent, said, ‘Foreigners’ enthusiasm for property in Chinese cities is mainly stimulated by the huge appreciation potential and the high-end second-hand market is regarded as another way for them to generate profit in the future.’ And he acknowledged extending the restrictions to the used housing sector would help cool down the real estate market in general.
But can such regulations be implemented?
Jiang Yadong, a researcher at the Beijing Real Estate Industrial Association, said, ‘Cash transactions are very common in the second-hand market, thus it will be impossible for an administrator to supervise.’ And, at the moment, there is no overall registration system for the used property market, which means there is no complete record of buyers and sellers that can be provided to the administrators. Without knowledge it is difficult to apply control.
Jiang Yadong said he believed the first step in formulating or even implementing restrictions on the second-hand market is market standardization. And local governments should follow the national standard and take efforts to administer and supervise market players.
He said, ‘I believe related regulations will be issued sooner or later to guarantee the efficiency of macro control policies for the over-heated real estate market.’
Source: People’s Daily Online