LOCAL GOVERNMENTS GRANTED AUTHORITY TO REVITALISE PROPERTY MARKETS
November 10, 2008 | BY
clpstaff &clp articlesLocal governments now have the authority to issue their own rules on property markets. The authority was passed down by the central government on October…
Local governments now have the authority to issue their own rules on property markets. The authority was passed down by the central government on October 18 in the hope to boost the cooling off in the property market.
The measures include raising the ceiling on government funding or subsidies for home-buyers as well as cutting taxes and extending the time limit for property firms to develop lands parcels.
Hayden Flinn, partner at Mallesons Stephen Jaques, said that international investors and developers are happy with the decision as it gives more certainty on how they will be permitted to participate in the market.
“Over the last 18 months, there has been a lack of clarity over when foreigners will be permitted to acquire real estate in China. There are clearly many matters relating to real estate that are best regulated at a local level,” he says.
In all 18 cities, including Shanghai, Xi'an, Xiamen and Hangzhou, have already issued their own policies.
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