Shanghai Property – Foreigners must show entry records to buy home

Shanghai Property – Foreigners must show entry records to buy home

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PROPERTY transaction centres in Shanghai now require foreigners to show immigration records when buying homes to prove that they have lived on the Chinese mainland for more than a year, the Oriental Morning Post reported today.

China unveiled a string of new policies in July to restrict overseas property investment on concerns of that an influx of foreign capital would aggravate speculation in the domestic housing market.

Under the new policies, foreigners can’t buy homes or apartments on the mainland until they’ve been here at least a year. Those who meet the residency rules must purchase property only for their own use and cannot lease it to others.

Shanghai property transaction centers can make up own rules on trading on the basis of these policies, according to Shanghai Municipal Housing, Land and Resource Administration Bureau.

Four Shanghai districts, Jing’an, Xuhui, Baoshan and Pudong New Area, have banned foreigners and overseas Chinese from buying second homes within their jurisdictions since October.

Among other measures, overseas institutions and individuals that want to purchase property for purposes other than their own use must set up a company in China, according to a joint circular issued by six government agencies.

Source: Shanghai Daily