| Rules on Second Homes Purchase in Shanghai |
| Purchasing or Renting a Home and Office in Beijing |
| New Rules for Property Sales to Foreigners |
| Notice on the Adjustments on the Regulations Concerning Purchasing or Renting Residence and Offices of Resident Foreign Correspondents and Media Organizations in Beijing |
Rules on Second Homes Purchase in Shanghai
Four Shanghai districts have banned people from overseas from buying second homes within their jurisdictions.
The move precedes the issue of city government rules for overseas property investors, which are still under discussion.
District transaction centers in Pudong New Area and Jing'an, Xuhui and Baoshan districts have stopped accepting applications from foreigners and Hong Kong, Taiwan and Macau residents who want to buy a house if they already own a home in the city, according to staff at the centers.
Transaction centers transfer the title deeds of property from owners to buyers.
Pudong New Area has also stopped transactions for overseas individuals and companies investing in office and retail property.
Pudong said its new policy came into effect in the middle of last month, while Xuhui said the rules were effective from yesterday. Jing'an and Baoshan said they halted the transactions on July 24 when the central government introduced guidelines to restrict property investment by foreigners.
Under the national framework policy set by six government bodies including the Ministry of Construction and the State Administration of Foreign Exchange in July, overseas individuals must live for at least one year on the mainland before they can buy a house. They must also promise that the house is for personal use.
Fang Lei, spokeswoman for the Shanghai Housing, Land and Resources Administration Bureau, said the government was still drawing up detailed rules, but declined to give a timetable for the issuance.
When issued, the rules will cover the whole city and district governments will be expected to fall in line.
Industry insiders said the central government's guidelines were difficult to implement because they were vague over the definition of "personal use."
"That's why some transaction centers have interpreted the general policy as barring foreigners from buying a second house," said an industry insider who preferred to remain anonymous. "Otherwise, it's too easy for buyers to claim that a second, third or even more purchases are all personal."
The central government introduced the July guidelines amid growing concern that the sudden influx of foreign investment would increase housing speculation.
(CRI October 14, 2006)
Purchasing or Renting a Home and Office in Beijing
If you are a newcomer in China, you may find it difficult to locate a house for yourself. The Beijing Housing Service Corporation for Diplomatic Missions will provide free consult service on office or residence housing, including recommending to foreign institutions suitable candidate houses when necessary. You may also rely on trust-worthy housing intermediaries to do the job for you. When purchasing houses, you need to check whether the real estate developer has the full set of formalities for the sale. After you have chosen the house you need to go through relevant formalities with Beijing Municipal Housing and Land Administration Bureau.
Resident foreign correspondents and foreign news agencies in Beijing may send a written application to rent a home or office to the Beijing Diplomatic Housing Service Corporation, detailing specific requirements. The corporation can provide you with appropriate housing or offices, and is also responsible for building management and maintenance. Resident foreign correspondents and foreign news agencies may also rent or purchase homes and offices approved for foreigners in Chaoyang or Dongcheng districts. If a resident correspondent or news agency intends to change an office or residence, the IPC should be notified in writing.
Foreign correspondents and news agencies in Shanghai and Guangzhou should find homes and offices in accordance with local regulations.
Beijing Housing Service Corporation for Diplomatic Missions
It provides office buildings, living quarters, property management and relevant services to diplomatic missions and all their staff in their daily lives, both occupational and private. Its remit covers several diplomatic residence compounds and apartment buildings in the select, desirable districts of Jianguomenwai, Qijiayuan, Sanlitun, Tayuan, Liangmaqiao, and Gold Island, and it also has dozens of independent small villas for rent. Under the Corporation, there are six property management departments in charge of the management, maintenance, public security, sanitation and landscaping and other related services. Add: No.223 Chaoyangmennei Dajie, Dongcheng District, Beijing Tel: 65122200、65321040 Fax:65594620 Postcode:100010 Website: http://www.bsbdm.com.cn/webs/english/group.jsp
New Rules for Property Sales to Foreigners
New rules to control foreign investment in China's property market have been agreed, following concern that surging foreign speculation in the market is forcing up house prices.
Shanghai-based China Business News reported on July 17, 2006 that six government bodies including the Ministry of Construction and Ministry of Commerce have signed an agreement on a rule to regulate overseas capital in the property market.
Foreign firms or individuals will have to use their real names when buying residential houses. And foreigners will not be allowed to buy residential housing that is not for their "own use or own habitation."
"The measure provides a premise for the government to impose a property tax, which is very popular in most developed countries," said Xu Dianqing, professor with the China Center for Economic Research of Peking University.
"A property tax would demand a register of names, and it would be the best way to restrain speculation on the property market," he said.
The rule also requires foreign businesses or individuals buying Chinese property not for their own use to set up a China-registered company to handle the purchase.
The measures are believed to make it easier for the government to monitor the flow of overseas capital into the property market.
"Although there has always been a claim that foreign capital pushes up prices, both the government and research department in fact lack detailed data on this," said Yu Zhiyong, an analyst with Shenzhen-based China Merchants Securities. "The name register will give them a clearer picture."
Foreign-funded property firms investing more than US$10 million will need to hold registered capital equal to no less than 50 percent of the value of the investment, potentially a huge hurdle for many firms.
The measure is aimed at preventing those who do not have adequate capital from speculating in the market.
"Currently, if a foreign-funded property firm does not have adequate money to invest in the property market, it would borrow from Chinese commercial banks, which in turn transfer the risk to domestic banks," Xu said.
"With the measure setting such high entrance standards, domestic banks are protected from these potential risks," he said.
Xu added that the public should consider the move to be a restriction on foreign capital entering the property market.
According to the rule, investors with registered capital less than 35 percent of the total value of a project, or who fail to obtain a land-use certificate, will not be allowed to borrow from domestic or foreign lenders.
The transfer of projects or stakes in foreign-funded property firms and the acquisition of domestic property companies must be approved by the government.
(China Daily July 18, 2006)
Notice on the Adjustments on the Regulations Concerning Purchasing or Renting Residence and Offices of Resident Foreign Correspondents and Media Organizations in Beijing
Taking into consideration of the need of foreign correspondents and media organizations accredited in Beijing and according to the relevant regulations of the Beijing Municipal government, the Information Department of the Chinese Ministry of Foreign Affairs has made the following adjustments on the regulations concerning the purchasing or renting of residence and offices of resident foreign correspondents and media organizations in Beijing.
1. Resident foreign correspondents and foreign media organizations may purchase or rent residence and offices in the 18 districts and counties of Beijing. While dong so, they should abide by "Regulations on City House Leasing of PRC" and "Regulations of the Urban Real Estate Transfer of the Beijing Municipality".
The Beijing Diplomatic Housing Service Corporation still stands ready to provide all foreign correspondents and media organizations with appropriate services on the renting purchasing of housing or offices.
Add: 223# Chaoneidajie, Dongcheng District, Beijing
Tel: 65324849, 65321040, Fax: 65594620,
Website: http://www.dhsc.com.cn
2. Foreign correspondents are requested to follow the current regulations on renting and purchasing of residence and offices for foreigners in China. While dealing with renting or purchasing procedures, both sides (lease-holder and tenant, purchaser and seller) should get the approval at the Beijing Foreign-related Construction Project Examination Office (Add: 10#, Dengchao Hutong, Dongcheng District, Beijing. Tel: 65122820 Fax: 65122820 ext. 804), before signing the contract.
3. After renting or purchasing commercial residence or offices, foreign resident correspondents and media organizations are requested to notify the IPC and go through necessary procedures with the new leasing or purchasing contracts to obtain resident permits at the Division of Aliens and Exit-Entry Administration of the Beijing Municipal Public Security Bureau according to "Law of the People's Republic of China on Entry and Exit of Aliens" and its detailed rules. For those with service passports please go to the Beijing Foreign Affairs Office. When you move into the new residence or offices, a registration should be done at the local police station. Any change of residence or office should be notified. The Information Department of the Chinese Ministry of Foreign Affairs hereby would like to remind you that any failure to go through such procedures will be taken as a violation of the regulation.
4. The above notice will take effect from July 1st, 2004.
(The Information Department of the Chinese Ministry of Foreign Affairs, June 9, 2004)
