China's major economic powerhouse Shanghai has released a new policy to regulate the purchase of houses by companies amid the country’s renewed efforts to crack down on property irregularities in 30 major cities.
A view of landmark buildings in Shanghai. (File photo: China News Service)
Since July 3, enterprises must meet all three requirements to buy commercial housing in Shanghai: its establishment period in Shanghai is no less than 5 years, it has paid 1 million yuan (about $149,000) of tax and has at least 10 employees.
Company purchasers are also required to keep the property for five years before reselling it, an increase from three years in the past requirement, according to Shanghai Municipal Commission of Housing and Urban and Rural Development.
The commission also said it will cooperate with other departments to strengthen the management of commodity housing sales, transaction registration, and establish an information sharing mechanism to ensure the implementation of measures.
More Chinese cities have recently tightened restrictions on home purchasing by companies to further prevent speculation in the real estate sector. Meanwhile, the Ministry of Housing and Urban-Rural Development introduced new measures to regulate speculative investors, illegal agencies, illegal developers, and false advertising in 30 cities including Beijing, Shanghai, Guangzhou, and Shenzhen.
Cover image: VCG