China to rein in foreign property investment

The paper cited an unnamed source as saying that revised guidelines on foreign investment due to be released by the ministry in the first half of this year would continue to place real estate in a restrictive category.

"The Ministry of Commerce will be more rigorous in its approval process for real estate projects," it cited the source as saying.

The current guidelines, dating back to 2005, offer favourable tax and other policies for foreign investment in average residential properties but are restrictive towards foreign investments in high-end hotels, villas, office buildings and other projects, the paper said.

China has introduced a slew of measures, including increased down payments and limitations on foreigners' purchases of real estate, to dampen speculative real estate investment and slow property inflation.

The construction ministry said last week that it would check on whether local governments were implementing central authorities' measures on the market and hold to account those officials who defied the orders. - Reuters