ANNOUNCEMENT 15 Nov 2010In November 2010, the government of China announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
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.