One overseas person one apartment
PRSEA | Aug 11, 2006 | Comments 0
Officials of six Chinese ministries and commissions including the Ministry of Construction gave an explanation of the Proposals on Administration and Standardization of Foreign Capital´s Access to Real Estate Market.
They stressed that 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.
However, there are still two requirements for overseas persons in purchase of houses for self use in the mainland of China.
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, and 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 be for the use of self living. Only by meeting this requirement, can they go through relevant procedures on foreign exchange payment and remittance.
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.
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