The Chinese government has announced that it is planning on introducing further legislation and regulatory measure to help cool the overheated real estate sector.
Officials have said that they will begin increasing checks and supervision on property investments that involve overseas buyers, as well as looking to strengthen risk controls on the sector. Foreign-funded developers are no longer allowed to make profits by buying and selling property, the ministry of commerce said.
Foreign investment into the real estate sector in China during 2010 grew by 48 per cent year-on-year to USD 20.1 billion.
And in an attempt to put a stop to this trend, the commerce ministry has ordered local authorities to halt the approval of some foreign property investments and stop speculative purchases.
According to real estate brokerage house Colliers International, foreign capital accounted for around 40 per cent of the public deals in Beijing's property investment market
in 2010, compared with 20 per cent in 2009.
- Monday 10 January 2011