Categorized | International

China Plans to Add Further Property Restrictions for Foreign Buyers

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The Chinese government is strongly considering more property restrictions so as to further increase its control over the nation’s real estate market. Their current property market restrictions have been under intense scrutiny over the past few months, as analysts fear that the existing policies could not only cripple China’s housing market performance, but also its economy as a whole.

China’s government, though, remains confident that its policies will prove effective in the long run. As such, government officials are now considering an extension of their current restrictions by adding even more stringent regulations against foreign investors.

The newly proposed restrictions would take away the right of developers funded by international sources to profit on the purchase and resale of properties in China. In addition, more taxes are being considered on home purchases so as to further devalue homes across the country. Local government officials in China have expressed concerns that the current and proposed restrictions are causing a massive decline in revenue that is used to fund local government-sponsored projects.

China is not the first country to consider serious restrictions against foreign investors. Various countries throughout Asia and South America have enacted similar measures. However, China’s proposed restrictions are the most stringent seen thus far, and could cause property values to fall through the floor.

Economic analysts are worried that economic growth in China could essentially stall in 2012, as the housing market and property construction are two major national markets. The Chinese government, however, is confident that they are taking all of the right actions so as to prevent a housing bubble that could produce much greater damage in terms of growth.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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