China recently issued a notice regarding the access by foreign investors to the Real Estate market.

According to previous national legislation, aimed to cool down the real estate sector, foreign investors (including Hong Kong, Macau and Taiwan nationals) were subject to special restrictions in order to invest in Chinese real estate, such as the maximum amount of properties that may be purchased, and the purpose for the purchase (for example, self-use or investment purpose).

The Notice now specify that qualified overseas institutions and individuals may purchase housing in China without restrictions on the number of housing to be purchased; it is however specified that if any local authority has set any additional restriction to property purchase such restriction shall apply to foreign investors too.

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.

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