Shanghai restricts foreign property investors

Shanghai’s government is reportedly trying to open up the domestic property market by putting restrictions on foreign property investors.

The government is looking to ban all foreign investors and non-permanent Chinese citizens from buying property and real estate in Shanghai, whilst simultaneously working on a new property purchase system for non-permanent residents, although it is understood that workers on temporary permits would be exempt from the restrictions.

Shanghai’s plans are a direct response to the State Council of China’s orders that local authorities must do more to try and help China’s low income families find affordable housing throughout the country. In a time where property prices in the country have rocketed, more and more families are finding that they are unable to get a foot on the ladder and many are welcoming the ban on foreign investors.

It isn’t the first time that foreign investors in Chinese property have found obstacles in their way – the SHLRB has recently introduced laws which restrict buyers of residential and commercial land to using only yuan in an attempt to remove many foreign speculators from the Chinese real estate market.

It is hoped that the moves will stabilize property prices in Shanghai, reduce property inflation, and allow more Chinese families to afford a house of their own – in the last 12 months, the average property price in the city has grown by 7.9%.

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