Beijing lifts real estate restrictions for foreign investors

The Beijing government has lifted restrictions on foreign nationals buying property in the city. Overseas investors were previously limited to purchasing certain types of properties in Beijing, but a decline in foreign investment has led to a change in policy for the duration of this year.

As well as restricting the kind of property foreign investors could buy, the Beijing government also stipulated that non-Chinese buyers needed to be resident in China for at least 12 months before they could purchase real estate, reports Overseas Property Professional (OPP). However, the restrictions, which were introduced in 2007, have now been lifted for 2009.

The move is believed to have been prompted by a significant fall in foreign investment in Beijing. Government figures reveal that before the restrictions were introduced foreign buyers accounted for eight per cent of all investors in property in Beijing . However, this fell to 0.5 per cent in 2008.

A spokesman for the National Association of Realtors told OPP: "It's a welcome sign for Beijing's government to remove the restrictions of foreign nationals' purchase of real estate in Beijing in 2009. Hopefully other regions will follow suit."

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