Foreigner Buying Houses in China?

I am from UK living and working in China for several years, my wife is chinese. I bought a house in China May of this year and have been looking to buy another house. In July I hear there are some new PRC regulations prohibiting foreigners buying more than one house in China.


I would be interested in some advice on this subject. Does the new regulations apply to foreigner from UK and does this change if now have a chinese wife?


If first house purchased for investment before the regulation, is this house exempt from the regulation and so can I still buy a second house to live in or is the new regulation retroactive and if so what happens now to my first house?


If the regulation applies to all of China how will they regulate this as if one buys a house in different cities is there a system whereby the house purchases of an individual can be tracked?


Are there any other options one can consider if as a foreigner wish to purchase more than one house in China?


Any advice appreciated.

It is just a directive without legal effect. It depends on the local government whether to enforce it or not. In guangzhou, the local government is going to enforce it for 1st hand apartments. There is no sign the local government will control 2nd hand transfer to foreigners.


OK. To answer your questions.


If the local government in Shanghai follows the directive strictly, one foreigner can buy only one apartment (whether jointly or solely) to stay in. On the face of it, it seems that it does not prevent one who already owns apartments that he or she is not staying in. However, in a such case, one may have to produce registered lease agreement to show that possession is not with him or her. Oh no, that will mean tax problem.


As for buying of house in another city, well, I guess you can do that if you have another complete set of residency papers in that city. Of course, when it comes to paying personal income tax, that city IRA can come after you since your second set of papers are hard evidence of you residing there.


As for tracking, it is so easy with computers and computer network.


Not to worry. There is too much at stake to band foreigners to buy from the 2nd hand market.

I bought a flat several years back when you had to pay in cash (or through the banks but without getting a mortgage). The rules that changed this year won't affect me.


One of the new stipulations says foreigners who have been here less than 2 years cannot buy a property. THis is geared to stem speculative purchases. I think it is a good rule.


And banks have also been ordered to keep money tight when foreigners apply for loans.


You will probably get more up-to-date information by contacting www.dezshira.com

Peking-based consultancy.