A recent government ban on foreign real estate investment profits and villa construction in China are the latest in a series of policies aimed at curbing the country’s so called ‘property bubble’. According to a statement by the Chinese Ministry of Commerce (MOC), foreign funded developers will not be allowed to make profits through the buying and selling of real estate projects. The MOC, alongside the Ministry of Land and Resources and the State Administration of Foreign Exchange, will be responsible for the strict monitoring of all transactions.
While in 2007, foreign investors outside Asia accounted for a record 33 per cent of property investment in China, the figure fell dramatically in 2008 to 12 per cent before falling to just 2 per cent in 2009.
