New policies aim to control foreign property investment
15 June 2007
China's Ministry of Commerce has listed a number of measures controlling foreign direct investment in its real estate sector as the country strives to avoid bubbles created by speculative money from abroad in the sector, according to Xinhua (in Chinese). Foreign investments are strictly limited in luxury real estate, and foreign investors are required to establish a real estate company before they can invest in real estate projects. The country has been trying to build more affordable apartments for local residents and curb rapidly rising housing prices. The sale price of new houses rose by around 6% year-on-year in 70 mainland cities including Beijing, Shanghai and Shenzhen in the first three months this year.