| Beijing reins in home purchases by foreigners |
SHANGHAI, Feb. 5 -- Beijing has issued rules barring overseas residents from owning more than one house in the city, as China seeks to curb speculation that has helped to caused soaring property prices.
The rules also apply to residents of Hong Kong, Macau and Taiwan, Beijing government said on Friday.
Overseas buyers will have to present valid identity and residence documents when buying a property in the city, authorities said.
The rules were issued jointly by Beijing's construction committee, foreign affairs office, public security bureau, industry and commerce bureau and commerce bureau.
Foreign embassies in China, representative offices of international organizations and people who enjoy diplomatic privileges need to obtain approval from the Ministry of Foreign Affairs to buy a property.
China has tightened real estate investment rules and raised interest rates amid concerns that a boom may lead to overcapacity, falling prices and bad loans. Beijing property prices rose 9.5 percent last year, the second-biggest gain in China's mainland, as the mainland's 10.7 percent economic growth rate fueled demand, Bloomberg News reported.
The Ministry of Construction issued rules in July requiring overseas buyers to register a company and seek government approval before buying properties for investment. The country also doubled construction land fees from January 1 to curtail development.
China's mainland raised interest rates twice last year and on January 5 ordered banks to set aside more money as reserves for the fourth time in seven months in a bid to curb lending.
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