The threshold for foreign capital in order to invest in the country’s property market has now been reduced in a decision by the State Council which has been jointly published by six government departments, meaning that foreign investment into real estate in China whether by an overseas company or individual is now a lot less restricted.
Overseas companies with operations in China and Individuals living and working in China can now buy property for personal use and the restrictions with regards to registered capital on foreign owned real estate companies introduced in 2006 whereby foreign investors looking to purchase property were required to have a registered capital of no less than half of their total investments if they exceeded $10 million US dollars has now been reduced to 40% and only one third if the total investment is valued at more than $30 million US dollars.  Under this new rule full payment of registered capital is no longer a precondition for applying for domestic or overseas loans.
It is hoped that this relaxation of the restrictions will mean a boost to China’s real estate market.