[photopress:beijingbuildings.jpg,full,alignright]There are now new rules in place regarding the purchase of real estate by overseas people in China. Officials of six Chinese ministries and commissions including the Ministry of Construction stressed qualified overseas persons are only allowed to buy one apartment for self use, and an overseas institution is only allowed to buy office buildings in the city where its branch or representative organ is located.
There are two other requirements. First is the time limit. Overseas persons are required to work or study in the mainland of China for more than one year, belonging to the category of ‘resident’ of the national economy. Those working and studying in China for less than one year have to rent accomodation for living.
Second is the limit of purpose. A house bought by an overseas person in the mainland of China must for the purchaser to live in. An industry insider held that such policy of ‘one person one apartment’ is good for the fight against speculation activities of foreign investors on the real estate market, but it will still be hard to implement, as the country lacks a nationwide consulting network on real-name purchase of houses.
Raymond Ho, Executive Director of Vigers Appraisal & Consulting Ltd, said, ‘We think that the new regulatory policies will lead to the long-term healthy development of the mainland´s property market. They will help people, especially those with low incomes, solve their housing problems and help increase the transparency of foreign investment in the real-estate market while making it hard for short-term speculators to make profit in the market.’
Source: Property Report.