A regulation restricting foreign speculation in the mainland property market will soon be announced by the Ministry of Construction, the South China Morning Post reported, citing an unnamed ministry official. A report in the China Business News Thursday said it was likely the regulation would restrict foreigners to buying one or two flats, which would not be able to be resold for a certain period, in an attempt to distinguish between hot money for speculation and genuine foreign investment. Analysts in Shanghai told the SCMP that possible additional measures might include limiting the outflow of foreign exchange to make cashing out more difficult, raising taxes and controlling mortgages. During the first quarter this year, foreign investment transactions in the mainland real estate market totaled US$5.4 billion, more than triple the same period last year.
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