On 27 August 2015, China issued a notice regarding access by foreign investors to the real estate market.
According to previous national legislation aimed at cooling down the real estate sector, foreign investors (including Hong Kong, Macau, and Taiwan nationals) were subject to special restrictions to invest in Chinese real estate, such as the maximum number of properties that may be purchased and the purpose for the purchase (for example, self-use or investment purposes).
The notice now specifies that qualified overseas institutions and individuals may purchase housing in China without restrictions on the number of properties to be purchased. However, it is specified that if any local authority has set any additional restrictions on property purchase, such restrictions shall apply to foreign investors as well.
In addition to the above, and contrary to previous legislation, foreign-invested real estate companies may have access to loans (both domestic and from abroad) and borrowing in foreign currency even before the full contribution of their registered capital.
