China: Housing purchasing by foreigners and overseas organizations will be strictly limited in China
On November 15, 2010, the Ministry of Housing and Urban Rural Development (MHURD) of the PRC and State Administration of Foreign Exchange (SAFE) jointly issued the Notice NO. (186) On Further Regulating on Housing Purchasing by Oversea Organizations and Individuals (the ‘Notice’) calling for standardizing the management over purchases of housing by overseas organizations and individuals.
In accordance with this Notice:
- foreigners are only permitted to purchase one flat for personal own use, and proof of having worked in China for at least one year prior to the purchase shall be required. Foreigners shall provide a written statement proving they have no other houses in China when making home purchases.
- individuals from Hong Kong SAR, Macao SAR, and Chinese Taiwan shall provide documents proving they are working, studying or residing on the mainland when they make home purchases.
- foreign organizations in China are only permitted to purchase non-residential housing in the cities of their registration to be used as offices, rather than as residential homes. Foreign organizations shall provide a written statement that they buy real estate just for office using. And in addition, when foreign organizations making real estate purchasing, they should provide Chinese governmental approval document and registration documents for their branches or representative offices in China.
Regulations announced by the Chinese government in 2006 did not specify the number of home purchases allowed by overseas individuals. And previous regulations did not ban foreign institutions from buying residential homes for private use. This Notice imposes more limitations than ever before on foreign individuals and organizations purchasing real estate in China.
Any Evidence-Based Deliberation:
|Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations?|
|Is there any evidence that alternatives to the proposed measure were considered?|
|Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government?|
|Was such evidence identified?|
|Is such evidence publicly available?|
|Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives?|
|Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken?|
|Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory?|
|Did the government state its intention to review the measure within one year of implementation?|
Date Discovered: 16/11/2010
Date of inception: 15 Nov 2010
GTA Evaluation: Red