Current rules and regulations for foreign investment in real estate

by Dezan Shira & Associates, Investment Intelligence Unit, Greater China

Foreign individuals and some foreign investors directly purchase property without any separate legal entity in China. In other words, they just buy and sell after the property has appreciated in price - it is estimated that some USD10bn has entered the market in this way in recent years. The Chinese government has realised that this can be harmful to the industry‘s healthy development, and such speculation is regarded by the local media and public as one cause of recently rising property prices. The government is also concerned about the possible loss of tax revenues if too many people use this method of investment.

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This article included in China Briefing Magazine

October 2006: Hot Property - A Guide To Foreign Investment in China's Property Market

Other articles in this issue: Minimum Salaries Rise In Tight Labour Markets - China by Dezan Shira & Associates, Investment Intelligence Unit, Greater China The Status of Land in China and the importance of due diligence by Dezan Shira & Associates, Investment Intelligence Unit, Greater China Hot Property - A Guide to Foreign Investment in China's Property Market by Cher H. Lim, Head, National Special Projects Advisory, Dezan Shira & Associates Hot Property - A Guide to Foreign Investment in China's Property Market by Fiona Yuan, Manager, Dezan Shira & Associates Hot Property - A Guide to Foreign Investment in China's Property Market by Zoe Zhou, Manager, Guangzhou, Dezan Shira & Associates