Shanghai Restricts Foreign Property Buyers

Shanghai’s government is reportedly attempting to open the domestic property market up to locals by introducing new legislation which would see a ban on purchases by all foreigners and non-permanent Chinese citizens in the city.

According to reports, the Shanghai Housing, Land and Resources Bureau (SHLRB), is working on implementing a new property purchase system for non-permanent residents, but pointed out that workers on temporary permits would be exempt from the restrictions. The moves are in direct response to a State Council of China circular which instructed local authorities to do more to help China’s low-income urban families find affordable housing. Foreigners were also hit by a move by the SHLRB which now restricts buyers of residential and commercial land to using renminbi (yuan) only in another attempt to remove foreign speculators from the market.

However, the moves have been welcomed by those keeping an eye on the situation, which has seen record numbers of families priced out of the domestic property market in recent years by high property inflation. Additionally, the action to restrict foreign investment is expected to be an effective measure to stabilize housing prices in Shanghai, which have leaped up by 7.9% in the past 12 months.