If you are looking to invest in the mercurial real estate market in China, you probably are going to have a tougher time of it in the coming couple of years. Government regulators have issued tougher restrictions on foreign property investment to try to slow down the rampant appreciations of property value.
While the larger cities such as Shanghai have already hit bubble stage, secondary cities such as Dalian, Qingdao and Hangzhou are just starting to see investments coming into the real estate markets. Communist regulators are afraid of property values skyrocketing in these cities and hurting the lower middle class.
A STRICTER approval process will be applied to foreign investment into China’s real estate market, especially in the high-end sector, according to a notice jointly released by the country’s top two regulators.
The notice, published by the Ministry of Commerce (MOFCOM) and the State Administration of Foreign Exchange (SAFE), will give the MOFCOM authority for final approval of a project. It also imposes a strict threshold on foreign investor applications to establish real estate companies. Only those that have land use rights and own property can establish real estate firms. via The Star