Asia Pacifi c Real Estate Investment Country Guides
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Savills World Research
Asia Pacific
Asia Pacific Real Estate
Investment Country Guides 2018
Australia | China
Hong Kong | Indonesia | Japan
Malaysia | New Zealand | Philippines
Singapore | South Korea
Taiwan | Thailand | Viet Nam
Includes UK and US
savills.com.hk/research
Asia Pacific | Investment Country Guides
An introduction to Savills
Asia
Australia Hong Kong Taiwan
Adelaide Central (2) Taichung
Brisbane Taikoo Shing (2) Taipei
39
Canberra Tsim Sha Tsui
Gold Coast Thailand
5
Gordon India Bangkok
Lindfield Bangalore
Melbourne Mumbai Vietnam Offices
Notting Hill Gurgaon Da nang
Parramatta Hanoi
Perth Indonesia Ho Chi Minh City
Roseville Jakarta
St Ives
Sunshine Coast Japan
Sydney Tokyo
Turramurra
Macau 3
Macau
China
Beijing Malaysia
Chengdu Johor Bahru
Chongqing Kuala Lumpur
& Ne w Z
Dalian Penang
lia
Guangzhou
New Zealand
Hangzhou
ra
Auckland
ea
Nanjing
Aust
Christchurch
land
Shanghai
Shenyang
Shenzhen
Tianjin
Wuhan
Xiamen
Xi’an
Singapore
Singapore (3)
South Korea
Seoul
17 Offices
Zhuhai
6
Source: Savills Research & Consultancy
Savills is a leading global real and Viet Nam. Savills provides a We are regarded as an innovative-
estate service provider listed on comprehensive range of advisory thinking organisation supported by
the London Stock Exchange. The and professional property services excellent negotiating skills. Savills
company, established in 1855, has a to developers, owners, tenants and chooses to focus on a defined set of
rich heritage with unrivalled growth. investors. These include consultancy clients, offering a premium service
The company now has over 600 services, facilities management, to organisations and individuals
offices and associates throughout space planning, corporate real estate with whom we share a common
the Americas, Europe, Asia Pacific, services, property management, goal. Savills is synonymous with a
Africa and the Middle East. leasing, valuation and sales in all key high-quality service offering and a
segments of commercial, residential, premium brand, taking a long-term
In Asia Pacific, Savills has 56 industrial, retail, investment and hotel view of real estate and investing in
regional offices comprising over property. strategic relationships.
25,000 staff. Asia Pacific markets
include Australia, China, Hong Kong, A unique combination of sector
India, Indonesia, Japan, Macau, knowledge and entrepreneurial flair
Malaysia, New Zealand, Singapore, gives clients access to real estate
South Korea, Taiwan, Thailand expertise of the highest calibre.
02
2018
Contents
Australia 05
China 11
Hong Kong 25
Indonesia 29
Japan 35
Malaysia 39
New Zealand 43
Philippines 47
Singapore 51
South Korea 57
Taiwan 61
Thailand 65
Viet Nam 69
UK 73
US 77
savills.com.hk/research 0304
Asia Pacific | Investment Country Guides 2018
Australia
Overview TABLE 1
A Federal election in Australia Key statistics
returned a conservative Government
in the middle of the year. This has Official name Australia
given some continuity to economic Australian dollar (100 cents),
policy and seen a return of business Currency floating currency
and consumer confidence. There has US$1 = AU$1.25 (1 February 2018)
been very little change in fiscal policy, Population 24.511 million (Q1/2017)
with most Federal Government policy
settings remaining unchanged. Policy Land area 7.69 million sq km
direction in areas of infrastructure Gross domestic product (GDP) per AU$74,100; US$50,718
spending, immigration and taxation capita
continue to evolve, but changes to 2.6% per annum (financial year [FY] 2016)
date have been limited. GDP growth 2.1% per annum (FY 2017)
2.5-3.5% per annum (FY 2018E)
Australia has employed a number Principal business centres Canberra, Sydney, Melbourne, Brisbane, Perth, Adelaide
of counter measures to offset the
impact of a fall in trade. The floating Source: Australian Bureau of Statistics
currency has played a significant
role in sheltering the economy as land registries established in each Freehold estate in fee simple
it moved from a high of around state and territory. While the system This is the most common form of
AU$1.10 against the US dollar to is essentially the same in each land ownership in Australia, and
around AU$0.75 currently. At the Australian state and territory, the represents the most complete
same time, the Reserve Bank of registration requirements vary. Under ownership interest available to
Australia lowered the official cash
the Torrens title system, the relevant persons other than the Crown. A fee
rate to an historic low of 1.50%.
state or territory guarantees title to simple estate is of unlimited duration.
Finally, the Federal Government
the person who is recorded on the
continues to support historically high
register as the owner of the land Leasehold interest
levels of skilled immigration.
(the exception being in the case of Leasehold interest is the interest
The effect of these three strategies fraud). A transfer of ownership of which a tenant or lessee acquires
has been to assist the transition of Torrens title land is effected through a from the owner of the land to use and
economic growth in the Australian change of the record on the register. occupy the land for a limited period.
economy from mining to non-mining The registered owner holds their Most commercial leases are for a
activities. Housing construction, ownership interest subject to prior fixed period of time. Generally, where
consumption, tourism and education registered interests and, subject to the land is owned by the Crown, a
are now contributing to GDP growth, the relevant legislation in each state person may take a long-term (often
albeit at a below-trend rate. These and territory, free from most interests 99 years) leasehold interest from
engines of economic growth can which are not registered. In other the Crown. Leasehold interests are
be expected to continue into 2018, generally required to be registered.
words, priority between interests is
generating somewhat stronger GDP Options to extend the term of the
established by the order in which
growth, although again slightly below lease may also be negotiated.
they are registered, not by the order
trend. Record levels of housing
in which they are executed (or
construction, as well as strong Other interests
signed).
price growth in both Melbourne and Other types of interest in land which
Sydney, have led to the introduction may be registered include:
of controls to dampen both demand As the state or territory guarantees
and supply. This is forecast to see a the accuracy of the register, mortgage interests – which
tempering in economic activity in the prospective purchasers can rely on generally secure repayment of a loan
housing market in 2018. the information on the register and or other financing arrangements;
act on the basis of it.
Types of property options to acquire land;
ownership The most commonly recognised
Most Australian land is held under interests in Australian land are easements – which generally
the Torrens title system, through detailed as follows. convey a right to use a particular part
savills.com.hk/research 05Asia Pacific | Investment Country Guides
of someone else’s land for a specific by the Treasurer, who is assisted when it ceases to be their principal
purpose, but not to occupy the land; by the Foreign Investment Review place of residence.
Board (FIRB), a division of the
restrictive covenants – a Commonwealth Government Treasury. Foreign companies, with an
covenant given by the owner of one The Commonwealth government established substantial business in
parcel of land to the owner of another publishes policy guidelines for the Australia, buying for named senior
parcel of land, by which the first administration of FATA. executives resident in Australia for
owner agrees not to use their land periods longer than 12 months, may
in a particular way, for the benefit of Like most countries, Australia be eligible for approval provided
the second owner; for example, an has rules and restrictions on the the accommodation is sold when
agreement by one owner not to build acquisition and ownership of no longer required for this purpose.
any structures which would impede property by foreign interests. The Whether a company is eligible, and
the neighbouring owner’s views. rules, restrictions and exemptions are the number of properties that may be
complicated however foreign persons acquired, will depend upon the extent
Non-Torrens title land are normally given approval to buy: of the foreign company’s operations
While most Australian property is and assets in Australia. Unless
now registered under the Torrens Vacant land for development, there are special circumstances,
title system (including all land in including house and land packages foreign companies normally will
Queensland and the Northern where construction has not not be permitted to buy more than
Territory), some areas of land have commenced, subject to a condition two houses under this category.
not been converted. Unconverted imposed under the FATA that Foreign companies would not be
parcels of land typically fall into one continuous construction commences eligible under this category where the
of the following categories: within 24 months for residential property would represent a significant
developments, or five years for proportion of its assets in Australia.
Crown land – land owned by a commercial developments not to be
state or territory of Australia or by the used for residential purposes (From From 1 December 2015,
Commonwealth of Australia; 1 July 2017, land is not considered applicants will pay a fee before
vacant if a wind or solar power their foreign investment application
Old system land – generally rural station is located on the surface of is processed. For a property
land. Most states and territories have the land); and valued under AU$1 million a
procedures for converting old system fee of AU$5,000 is payable. For
land to Torrens title whenever a new New dwellings such as house properties valued over AU$1 million
dealing with the land is lodged with and land packages, home units and a fee of AU$11,100 is payable
the land registry. townhouses purchased ‘off the plan’ then ~AU$11,100 incremental fee
that is, under construction or newly increase per additional AU$1 million
Native title constructed, but never occupied or in property value. Advanced off-
Native title was first recognised in previously sold. ‘Off the plan’ sales to the-plan certificates require a fee of
Australia in 1992, when the High foreigners are only permitted for new AU$25,700 upfront.
Court of Australia found that the development projects or extensively
traditional Aboriginal owners held refurbished commercial structures, Property developers can apply
native title over certain land. A which have been converted to for a New Dwelling Exemption
national scheme, implemented residential. Certificate for a specified
through legislation in each state and development if the development:
territory, governs the validity of land Certain categories of foreign will consist of 50 or more dwellings
dealings affecting native title and nationals, who hold a visa that (other than townhouses); has
establishes a process to deal with permits them to reside in Australia development approval from the
native title claims. Native title rights continuously for at least the next relevant government authority; and
can be compulsorily acquired or 12 months (such as students), may if applicable, foreign investment
surrendered under law, but cannot be given approval to purchase approval was given to purchase the
be transferred. Although native title only one established residential land and that conditions are being
is most relevant to non-freehold real estate (that is, second hand met. The Government will tighten the
land and Crown- or Commonwealth- dwellings) for use as their principal rules around the use of advanced off-
owned land, a prudent buyer will take place of residence (that is, not for the-plan certificates by limiting the
native title into account in relation to rental purposes) while in Australia. value of all apartments that can be
most land dealings. Approved temporary residents with bought by a single foreign investor to
valid visas will normally be allowed AU$3 million in the one development.
Overseas ownership to purchase only one established If foreign investors want to purchase
restrictions dwelling to live in as their residence apartments above this value, they will
The Australian government reviews (home) in Australia, subject to the have to seek individual approval.
and evaluates certain overseas conditions that they: use the property
investment proposals. Investment as their principal place of residence Proposals by foreign persons to
proposals by overseas interests in Australia; do not rent any part of acquire developed residential real
are regulated by the Foreign the property, including ensuring that estate that does not fall within the
Acquisitions and Takeovers Act 1975 it is vacant at settlement; and sell the above categories are subject to the
(Cth) (FATA). FATA is administered property within three months from FATA, but are not normally approved.
062018
Meaning of ‘foreign interests’ shares or units in Australian FIRB approval is required must be
The expression ‘foreign interest’ has urban land corporations or trust made conditional upon FIRB approval
a very technical meaning under FATA. estates, irrespective of value, must (unless approval has already been
There are complex tracing provisions, be approved by the Treasurer before granted). Contracts should provide
which have a broad reach. However, they can be implemented and should for a minimum of 40 days from the
in general terms, a foreign interest is: be presented to FIRB in advance. date of lodgement for a decision
Failure to notify may result in an order from FIRB. For any properties being
a natural person who is not for compulsory divestment. purchased at auction, prior FIRB
ordinarily resident in Australia; approval must be obtained.
You do not need prior approval to
an overseas government or its acquire residential real estate if you Measurement of areas
agencies; are: Measurements generally used in the
property industry are quoted as set
any corporation, business or an Australian citizen living abroad; out below by the Property Council of
trust in which there is a ‘substantial Australia:
interest’ held by an overseas person or an overseas citizen purchasing,
corporation. as a joint tenant, with your Australian gross lettable area – retail: the
citizen spouse; aggregate floor space contained
A substantial interest exists where within a tenancy at each floor and
there is an interest of 20% or more in an overseas citizen who holds a used for calculation in shopping
ownership, voting power or potential permanent resident visa; centres, commercial buildings and
voting power by a single person or shops generally.
corporation (together with associates) a New Zealand citizen.
or 40% or more in aggregate gross lettable area: the floor
ownership, voting power or potential space contained within a tenancy at
Proposals relating to rural land
voting power by two or more persons each floor and used for calculation
The definition of rural land includes
or corporations (together with their in warehouses, industrial buildings,
all land that is used wholly and
respective associates). Potential voting freestanding supermarkets and
exclusively for carrying on a
power refers in general terms to the showrooms.
substantial business of primary
number of votes that can be cast in a
production. A substantial business
general meeting of a corporation. net lettable area: the sum of the
of primary production must have a
whole-floor lettable areas, used in
commercial purpose or character and
Proposals relating to urban land calculating area in office buildings and
be involved in activities relating to the
Overseas entities wanting to acquire office parks.
urban land (including interests that cultivation of land, animal husbandry/
arise via leases, financing and profit- farming, horticulture, fishing, forest Lease terms
sharing arrangements) must make a operations, viticulture or dairy farming, Lease terms vary, depending on the
proposal to FATA. Proposals must be but does not include vacant land, location and type of the property. The
made in regard to the following: hobby farms, land used for stock following summary outlines some
agristment or mining. common terms found in Australian
developed non-residential retail and commercial leases:
commercial real estate where the The Government has passed
property is subject to heritage listing legislation which requires that, from 1 Lease period2
and valued at AU$5 million or more July 2015, foreign persons and foreign Retail: in most Australian
(in the case of both US and non-US government investors holding interest states and territories, the relevant
investors); in agricultural land must register those retail leasing legislation stipulates
interests with the Australian Taxation a minimum lease term (five years
developed non-residential Office (regardless of value). in most jurisdictions) unless this is
commercial real estate, where the
waived by the tenant. Generally, lease
property is not subject to heritage All existing holdings must be terms from three to five years are the
listing, valued at AU$55 million registered by December 31 2015 and most common, although longer leases
or more in the case of non-FTA any new interests must be registered may be available.
countries, with investors from FTA within 30 days of contract exchange
countries (US, Chilean, Japanese,
Commercial (including office and
Korean and New Zealand) allowed up
Proposed acquisitions of rural land industrial): subject to any specific
to AU$1,094 million;
valued at AU$15 million or more (or requirements under legislation in
the relevant threshold for US, New each state or territory, commercial
accommodation facilities, valued at
Zealand, Chilean, Singaporean or Thai leases can be for any length of time.
AU$55 million or more;
investors) must be approved by FIRB1. In most cases, commercial leases are
between five and ten years.
vacant real estate irrespective of
Contracts
value;
All contracts which are being used by A tenant may also be able to
overseas investors for the purchase negotiate options to extend the lease
residential real estate irrespective
of Australian real estate for which for a number of further terms.
of value (subject to certain
exceptions as outlined below); 1 Information current as of 1 December 2017. 2 The period or term of the lease.
savills.com.hk/research 07Asia Pacific | Investment Country Guides
Rent reviews3 the premises and “make-good” Transaction costs
The rent payable under the lease may obligations, where each party is made Brokerage/agency fees
be subject to periodic review using a responsible for specific maintenance/ Leasing fees are typically paid by the
predetermined method: for example, make-good obligations at the landlord and are negotiable prior to
a fixed review to increase the rent by beginning and/or end of the lease. appointment and will be dependent
5% per annum and/or by reference on whether it is a conjunctional or
to the consumer price index (CPI). Security of tenure5 sole-agent appointment. Typically,
Security of tenure only extends for leasing fees amount to 15% of the
Sub-letting/assignment4 the duration of the lease. first year’s rent.
A tenant might agree to sub-lease
or to assign space which they are Security of performance On transactions, typical fees are
leasing to a third party. Normally, Generally, a landlord will require in the range of 0.75% to 1.5% of
this cannot be done without security for performance by the the agreed price for commercial,
the landlord’s permission. If the tenant of the tenant’s obligations industrial and retail properties. Fees
landlord approves the sub-lease or on residential transactions will be
under a lease. This can be by way of
assignment, they may require the higher.
a bank guarantee, cash deposit bond
sub-lessee or assignee to provide
or company/personal guarantees.
guarantees or other security, Legal fees
depending on the terms of the Transaction and statutory search fees
Termination of a lease
original lease. will vary depending on the solicitor
Leases generally terminate upon
their expiry date. Options to renew instructed, the complexity and size
Repairs of the transaction, and on the nature
may be built into the lease by
The party responsible for making and location of the property.
repairs to the premises is generally negotiation. Commercial (retail,
set out in the lease. It is common office and industrial) leases do not
normally contain provisions requiring Registration fees and levies
for the landlord to be responsible for The land registry in the relevant
major structural and capital works, either party to be compensated on
state or territory will charge
and for the tenant to be responsible termination of the lease, except
registration fees for registering a
for maintaining the premises where the termination is due to
purchaser’s interest in the land (and
(subject to fair wear and tear) and default. Retail tenancy legislation in
for registering any mortgage or
for repairing any damage caused by most states and territories may also
other dealing on the land). In some
the tenant. Some leases also contain require compensation to be paid to
jurisdictions (for instance New South
clauses dealing with the fit-out of retail tenants if the landlord exercises
Wales), a levy is payable in addition
a right to terminate the lease pending
3 A periodic review of rent under a lease using a to the registration fee prior to the
demolition or redevelopment of the
predetermined method. For example, an increase in line land registry attending to registration
with CPI, or in accordance with a market valuation. premises.
of the purchaser’s interest in the
4 A contract whereby the whole or part of the
property is let to another person, the party letting being land. The amount of these levies is
themselves a lessee. The obligations of the lessee to the 5 When the term is used in connection with renting, it dependent on the purchase price of
lessor are not diminished. The length of the sub-lease means the certain term for which a tenant may remain in the land.
must not be longer than the unexpired part of the lease. occupation.
TABLE 2 Tax legislation
Marginal rates of land tax for commercial property* In Australia, power to levy tax
exists at both commonwealth
State/territory Threshold Rate Department
(i.e., federal) and state levels. The
(AU$) federal government levies taxes
Australian Capital such as income tax, and goods and
Not payable
Territory services tax (GST). Taxes levied by
AU$ 53,812 + 2% of land value above state governments include stamp
New South Wales 3,357,000 Office of State Revenue
AU$3,357,000 duty, land tax and payroll tax as
well as transaction duty, fees and
Northern Territory Not payable charges on certain kinds of business
transactions.
AU$62,500 + 1.75¢ for each AU$1 more than
Queensland 5,000,000 Office of State Revenue
AU$5,000,000
At the federal level, taxation is
AU$11,961 + AU$3.70 for every AU$100 or administered by the Australian
South Australia 1,076,001 Revenue South Australia
fractional part of AU$100 over AU$1,076,000
Taxation Office (ATO). At the state
AU$1,837.50 + 1.5% of amount above and territory level, the relevant
Tasmania 350,000 State Revenue Office
AU$350,000 taxation authority is the State
AU$24,975 + 2.25% of amount above Revenue Office of the applicable
Victoria 3,000,000 State Revenue Office
AU$3,000,000 state or territory.
AU$186,550 + 2.67¢ of each AU$1 in excess
Western Australia 11,000,000 Office of State Revenue
of AU$11,000,000 Stamp duty
Stamp duty is a tax imposed at the
Source: ATO / State Revenue Offices
*Information current as of 1 December 2017. Note that different marginal rates may apply, depending on property type and value. Please state/territory level. As a result, the
refer to the applicable State or Territory revenue office website for up-to-date information. stamp duty payable on a purchase
082018
of land will depend on where the TABLE 3
land is situated. Stamp duty may Income tax rates for Australian residents
also be payable on the purchase of
shares in a company, particularly Marginal
where the company is “land rich”. Taxation income (AU$) Tax on this income
tax rate (%)
Stamp duty is generally charged
at an incremental rate, based on 0–18,200 0 Nil
the higher of the market value of
the property transferred and the
18,201–37,000 19 19¢ for each AU$1 over AU$18,200
GST-inclusive consideration. Certain
exemptions and concessions may
be available. Stamp duty on land 37,001–80,000 32.5 AU$3,572 + 32.5¢ for each AU$1 over AU$37,000
acquisitions in New South Wales
is currently charged at a rate of 87,001–180,000 37 AU$19,822 + 37¢ for each AU$1 over AU$87,000
between 1.25% and 7.0%; however,
for the latest rates please contact
the State Revenue Office in the 180,001 + over 45 AU$54,232 + 45¢ for each AU$1 over AU$180,000
relevant state or territory. Stamp
duty is generally payable by the Source: Savills Research & Consultancy
purchaser, either by law or by
TABLE 4
commercial agreement, but in some
jurisdictions the seller and purchaser Income tax rates for non-Australian residents (foreign resident tax
are jointly and severally liable. The rates 2018-2019)
transfer of title to land cannot be
registered until stamp duty has been Taxation income (AU$)
Marginal
Tax on this income
paid. The state of South Australia is tax rate (%)
progressively abolishing stamp duty
on commercial property transfers. 0–87,000 32.5 32.5¢ for each AU$1
The rate will reduce from 1 July
2016, halve again from 1 July 2017, 87,001–180,000 37 AU$28,275 + 37¢ for each AU$1 over AU$80,000
and be zero from 1 July 2018. As
at November 2016, foreign buyers 180,001 + over 45 AU$62,685 + 45¢ for each AU$1 over AU$180,000
of residential property shall be liable
for additional duty at the rate of Source: Savills Research & Consultancy
4.00% in New South Wales, 7.00% in
Victoria and 3.00% in Queensland. Income tax in Australia. However, this principle
Individuals, trustees, superannuation may be subject to the application of
Land tax funds and companies deriving income double taxation agreements (DTAs)
Land tax is also imposed at the state/ from an Australian source must apply which Australia has entered into with
to the ATO for an Australian tax file a number of other countries (please
territory level. As a result, the rate
number and must lodge an annual tax refer to the section ‘Withholding tax’
of land tax, the threshold at which it
return with the ATO. Entities which overleaf for a list of countries).
becomes payable and the date on
carry on an enterprise in Australia also
which it is assessed and paid will
require an Australian business number. Taxation rates for individuals differ,
depend on where the land is situated.
depending on whether the individual
Generally, land tax is payable by the
Income tax is payable by individuals, is an Australian tax resident or
current owner as of 31 December
trustees (in certain circumstances), not. The marginal rates of taxation
or 30 June of the current year, and
superannuation funds and applicable for Australian tax residents
is assessed on the unimproved land
companies. Australian income tax is for the financial year from 1 July 2017
value. Certain exemptions may be
imposed on a single measurement of to 30 June 2018 are shown in Table 3.
available (for example, land tax is
taxable income, which is calculated
generally not payable on a principal as the sum of assessable income In addition, individual Australian tax
place of residence). In Victoria, derived by the taxpayer during residents must pay a Medicare Levy
foreign persons are subjected to an the relevant year of income, less of 2% of taxable income, subject
additional 0.50% land tax surcharge ‘allowable deductions’, i.e., to low-income thresholds, phase-in
on all land, rising to 1.50% from 1 limits and surcharges for individuals
January 2017. The current maximum Taxable Income = Assessable Income without private health insurance.
marginal rates of land tax for − Allowable Deductions Further, a levy of 2% for taxpayers on
commercial property are shown in AU$180,000+ to fund the Temporary
Table 2. Australian tax residents are generally Budget Repair Levy is payable from
liable to pay income tax in respect of 1 July 2014. The marginal rates of
Corporation tax their worldwide assessable income, taxation applicable for non-Australian
The tax rate for public and private whereas non-Australian tax residents tax residents for the financial year
companies, resident and non- only pay tax on that part of their from 1 July 2017 to 30 June 2018 are
resident, is currently 30%. income which is derived from sources shown in Table 4.
savills.com.hk/research 09Asia Pacific | Investment Country Guides
Non-Australian tax residents are not and, generally, the price paid for the the rate of interest withholding tax
required to pay a Medicare Levy of acquisition of the real estate (subject imposed, as the DTA allows for a rate
2% of taxable income. However, to certain exceptions). It is important to of 10% or higher.
a levy of 2% for non-Australian note that where the margin scheme is
taxpayers on AU$180,000+ to fund used to calculate GST, a purchaser of Royalties paid by an Australian tax
the Temporary Budget Repair Levy is real estate is not entitled to claim input resident to a non-Australian tax
payable from 1 July 2014. tax credit. resident are also subject to withholding
tax at a rate of 30% of the gross
Goods and Services Tax (GST) The sale of farm land, commercial real royalty amount, generally reduced to
GST is a broad-based consumption estate subject to lease, and grants of 10% if paid to a resident of a country
tax levied on the supply of most vacant land by the federal government with which Australia has a DTA.
goods and services in Australia, and may all be GST-free supplies, subject
on goods imported into Australia. to satisfying a number of requirements. Dividends paid by an Australian tax
The transfer of real estate located in resident company to a non-Australian
Australia is generally subject to GST, Managed investment trust (MIT) tax resident which are unfranked (i.e.,
which is calculated as 10% of the GST- Australia has also recently no Australian company tax has been
exclusive selling price of the real estate implemented the following major paid in respect of the profits from
and is payable by the seller. However, reforms in relation to the taxation of which the dividend has been paid) are
in the purchase of non-residential MITs: generally subject to 30% withholding
property, the GST liability is generally tax. The rate of dividend withholding
passed to the buyer as they can claim the ability for MITs to make an tax is generally reduced to 15% if paid
the GST as an input tax credit, subject election to treat gains and losses to a resident of a country with which
to satisfying certain requirements. on the disposal of certain assets, Australia has a DTA. Payment of a
including land, as subject to capital franked dividend by an Australian tax
There are two methods of calculating gains tax (CGT) treatment, thereby resident is exempt from withholding
GST in respect of the supply of certain allowing certain investors in an MIT to tax.
types of real estate: 1) the ordinary access a CGT discount on the disposal
method, and 2) the margin scheme. of underlying assets; DTAs have been signed by Australia
The ordinary method calculates GST with the following countries:
as 10% of the GST-exclusive sale price the extension of the definition of
of the property. The purchaser of a MIT so that a greater range of funds Argentina, Austria, Belgium, Canada,
property under the ordinary method may take advantage of the 15% Chile, Czech Republic, Denmark, Fiji,
may be entitled to claim the GST withholding tax rate which applies Finland, France, Germany, Hungary,
paid as an input tax credit, subject to to certain distributions to overseas India, Indonesia, Ireland, Italy, Japan,
satisfying certain requirements. The investors. Kiribati, Malaysia, Malta, Mexico,
margin scheme is generally applied Netherlands, New Zealand, Norway,
to the sale of newly constructed Withholding tax and tax treaties Papua New Guinea, People’s Republic
residential premises. A number of Withholding tax is imposed in certain of China (PRC), Philippines, Poland,
conditions must be satisfied for the circumstances on dividends, interest Romania, Russia, Singapore,
margin scheme to apply, including and royalties. Slovakia, South Africa, South
written agreement between the Korea, Spain, Sri Lanka, Sweden,
seller and purchaser. The margin For example, a borrower must withhold Switzerland, Taipei, Thailand, Turkey,
scheme calculates GST as 10% of 10% of the gross amount of the UK, US and Viet Nam.6
the margin, which is the difference interest paid to a non-resident creditor.
between the GST-exclusive sale price Most of Australia’s DTAs do not affect 6 Information current as of 15 November 2016.
Savills Australia
Please contact us for further information
Savills (Aust) Pty Limited
Paul Craig Chris Freeman Level 25, 1 Farrer Place, Sydney, NSW 2000,
CEO National Head, Capital Strategy Australia
+61 2 8215 8888 +61 2 8215 6093 T: +61 2 8215 8888
pcraig@savills.com.au cfreeman@savills.com.au F: +61 2 8215 8899
0102018
China
Overview TABLE 5
China is the world’s second largest Key statistics
economy after the US. It is also
the world’s fastest growing major Official name People’s Republic of China
economy, with average growth rates Renminbi
Currency
of 10% per annum over the past US$1 = RMB6.3294 (28 February 2018)
30 years. The country is also the Population 1.38 billion (2016)
second largest trading nation in the
world, being the largest exporter and Land area 9.6 million sq km
second largest importer of goods. GDP per capita RMB53,974; US$8,126 (2016)
Types of property GDP growth 6.7% per annum (2016)
ownership Principal business centres Shanghai, Beijing, Guangzhou, Shenzhen, Chengdu
Under Chinese legislation, all land
within urban areas is owned by the Source: FocusEconomics
state while land within rural areas is
owned by collectives for the exclusive year and buyers are restricted to the if the broker transacts the property
purpose of agriculture. According to purchase of one property for self use. on behalf of the seller, then the seller
a landmark property law passed in In addition to individuals, there are a will usually be liable for payment and
2007, all land, whether urban or rural, number of restrictions on ownership likewise for property transacted on
or containing existing privately owned by overseas companies, of which behalf of the buyer. This can also
structures, can be acquired by the the major legislative directives are vary according to prevailing market
state for public purposes providing detailed in the later section on key conditions. For example, where
fair compensation has been paid. legislation.
TABLE 6
While land itself cannot be owned by Type of land use
Measurement of areas
private individuals, use of the land can
Measurements are typically quoted
be granted based on usufruct land Land-use type Lease period (years)
as gross floor area (GFA), with the
rights. This essentially involves private
exception of the retail market which Residential 70
entities or individuals being granted
quotes on a usable floor area basis, Education, science, culture, public health
the use of land for a given period of 50
and are generally quoted in sq m and physical education
time. The time for which land-use
by practitioners in the real estate Industrial 50
rights are given varies depending on
industry.
the specific use of the site. Commercial, tourism and recreation 40
While land cannot be owned, property Transaction costs Mixed-use or other 50
that is constructed on the land can, Brokerage/agency fees
Source: Savills Research
and private owners of that property Where a real estate broker has been
are legally allowed to transfer used in the transaction of a property, TABLE 7
either the buyer or seller is usually
ownership of that property to other
liable for payment of commission.
Office lease terms
private entities. The legal recognition
of this right to transfer property, in the Generally speaking, commission Typically 3 years (often with a renewal
Lease period option for a further 3 years), occasionally up
aforementioned legislation released is around 1%, although this may to 5 years.
in 2007, was a major milestone vary according to the nature of the Only for longer-term leases and lease
Rent reviews
property. Major considerations for renewals.
towards a more transparent property
agreeing on the amount payable Sub-letting/ Usually only allowed to affiliated companies
ownership system. assignment and only if allowed in the lease agreement.
are the total value of the asset, the Sometimes allowed after second year as
Termination
Overseas ownership asset type and respective market long as 3 months’ prior notice is given.
restrictions conditions.
Repairs
Carried out by the property manager,
who bears the cost, dependent on the
In China, property ownership by circumstances/fault.
overseas nationals is restricted to The party responsible for payment
Security of tenure Protected by law.
those who have been resident in the usually depends on who the broker
country for a period of more than one is working on behalf of. For example, Source: Savills Research
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TABLE 8 demand for an asset is low the seller
Real estate developers - sale of properties may need to pay the commission
as an incentive for brokers to pitch
General taxpayer Small-scale taxpayer their project, and conversely where
General method Applicable Not applicable competition is fierce and buyers are
Simplified method Applicable Applicable lining up, the buyer may pay the
General method: 11%; commission as an incentive for the
Old Tax rate 5%
projects Simplified method: 5% broker to push with negotiations.
General method: Land price
deductible
Note on taxable income
Simplified method: Land price not
- Tax legislation
deductible Stamp duty (payable by buyer and
General method Applicable Not applicable seller)
New Simplified method Not applicable Applicable A stamp duty of 0.05% is levied on
projects Tax rate 11% 5% the contracted value of the property
and is payable by both the buyer and
Note on taxable income Land price deductible -
seller of property in China.
Source: State Administration of Taxation
Value-added Tax
TABLE 9
From 1 May 2016, all industries
Non-real estate developers - sale of properties including the real estate and
Small-scale Small-scale construction industry started to use
General taxpayer General taxpayer
taxpaer taxpayer Value Added Tax (VAT) transited
Non self-built properties Self-built properties from Business Tax (BT). Detailed
General method Applicable Not applicable Applicable Not applicable summaries are shown in Table 8 to 11.
Simplified method Applicable Applicable Applicable Applicable
General method: General method: NB: Old projects refer to projects
11%; 11%; that include properties that landlords
Old Tax rate 5% 5%
Simplified method: Simplified method:
projects 5% 5% acquired on or before April 30, 2016.
General method New projects include properties that
and simplified The original landlords acquired after April 30,
Note on taxable
income
method: The purchase price - -
original purchase deductible 2016.
price deductible
General method Applicable Not applicable Applicable Not applicable NB: Small-scale taxpayers have
Simplified method Not applicable Applicable Not applicable Applicable taxable income of no more than
New RMB5 million per year; and general
projects Tax rate 11% 5% 11% 5%
The original The original taxpayers have more than RMB5
Note on taxable
income
purchase price purchase price - - million of taxable income per year.
deductible deductible
Source: State Administration of Taxation
Urban real estate tax
TABLE 10 Real estate tax can be levied in one
Individual - sale of properties of two ways which can be negotiated
with local authorities:
More than two years (including two years)
Less than two years Non-primary residential Primary residential 12% of the rental income.
property property
City except Beijing,
Shanghai, Guangzhou 5% VAT on entire income No VAT applicable 1.2% of the adjusted cost – set
and Shenzhen
at 70% to 80% of the book value
Beijing, Shanghai,
5% VAT on (entire income of the property. The book value of
Guangzhou and 5% VAT on entire income No VAT applicable
minus original purchase price)
Shenzhen a property is set at the time of the
Source: State Administration of Taxation asset’s construction completion,
and will not be reset unless the
TABLE 11 asset is sold through a direct asset
Lease of properties transaction.
General taxpayer Small-scale taxpaer Individual
Corporate income tax (CIT)
General method Applicable Not applicable Not applicable
(payable by seller, also as part of
Old Simplified method Applicable Applicable Applicable
projects operating costs)
General method: 11%; CIT is levied at 25% on the profits
Tax rate 5% 1.5%
Simplified method: 5%
of rental income and gains from
General method Applicable Not applicable Not applicable
New the Chinese real estate of foreign
Simplified method Not applicable Applicable Applicable
projects investment enterprises (FIEs) and
Tax rate 11% 5% 1.5% overseas enterprises maintaining
Source: State Administration of Taxation establishments in China.
0122018
Land value appreciation tax (LVAT) TABLE 12
(payable by the seller) LVAT
LVAT, as set out by the central
government, is applicable to the Profits (%) Tax rate (%)
taxable gain based on the sales
of proceeds after a number of
Below 50 30
deductions, including but not
limited to the cost of land-use
50–100 40
rights, construction costs and taxes
incurred during the transfer of land
100–200 50
and property. A detailed summary is
shown in Table 12.
Above 200 60
Deed tax (payable by buyer)
Source: Savills Research
Deed tax is shouldered by the buyer
and ranges from 3% to 5% of the
TABLE 13
total value of the land-use rights or
real property transferred depending Land-use tax
on the location.
Tax rate (RMB per sq m)
According to Circular 137 issued by City size
the State Administration of Taxation, 1988 2007
for an individual buying their first
residence which is smaller than 90 Large city 0.5-10 1.5-30
sq m, the deed tax is 1% of the total
value of the property, effective from 1 Medium city 0.4-8 1.2-24
November 2008.
Small city 0.3-6 0.9-18
Land-use tax (operating costs)
Effective from the start of 2007, Towns and mining area 0.2-4 0.6-12
overseas enterprises are subject to the
same land-use tax that was previously Source: Savills Research
borne only by domestic enterprises.
The tax is applied to the project’s
Exemptions Tax target
total GFA and varies from region to
Local residents: Only applicable for the nine major
region, with first-tier cities. A detailed
60 sq m GFA exemptions will be districts:
summary is shown in Table 13.
granted on a per head basis.
Property tax all villas, both existing and newly
for newly acquired first homes acquired.
Chongqing and Shanghai
resold within one year, the paid tax
announced, with the State Council’s amount will be refunded.
approval, details of the trial property newly acquired high-end
tax which became effective on 28 residential units priced more than
for independent children who
January 2011. double the reference price.
acquire the first home for marriage,
no tax will be levied.
Shanghai trial property tax details newly acquired second, ordinary
Tax target Non-local residents: units for non-local residents.
newly acquired second or more first homes of qualified experts/
home units for local households. talent working in the city will be Valuation basis
exempt. transaction price (eventually to be
newly acquired first or more based on regular appraisal price).
home units for non-local households.
first homes of those residing and
working in Shanghai for more than Applicable tax rate (per annum) –
Valuation basis
three years will be exempt. please refer to Table 14.
70% of the transaction price
(eventually to be based on regular
Chongqing trial property tax details Exemptions (for locals)
appraisal price).
Reference price for existing villa units, 180 sq m
Applicable tax rate (per annum) the average transaction price GFA will be exempt per household.
0.4% for units with prices equal in Chongqing’s nine major districts
to or lower than double the previous (Yuzhong, Jiangbei, Sapingba, for newly acquired villas or high-
year’s average first-hand price. Jiulongpo, Dadukou, Nan’an, Beibei, end residential units, 100 sq m GFA
Tubei and Banan) in the previous two will be exempt per household.
0.6% for all other units. years.
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TABLE 14 TABLE 15
Applicable tax rate (per annum) Institutional buyers – acquisition taxes and fees
Tax rate Local/ Types of taxes Tax rate
Pricing Property type
(%) non-local2018
TABLE 18
Individual buyers – acquisition taxes and fees
Types of taxes Tax base Tax rate
Primary normal Primary normal
Non-primary
Scenario residence smaller than residence larger Commercial property
residential property
90 sq m than 90 sq m
Key costs
Deed tax (契税) Contract price 1% 1.5–2.5% 3–5% 3–5%
Ancillary costs
Stamp duty (印花税) Contract price 0–0.05%
Source: Savills Research
Note: Other fees potentially include but are not limited to: title deed registration fees (转移登记费), real estate ownership certificate (房产证收费), stamp duty for real estate
ownership certificate (权证印花税), handling fees for property ownership certificate (房产证转移费), transaction charges (交易手续费).
TABLE 19
Individual sellers – disposal taxes and fees
Types of taxes Tax base Tax rate
Normal Non-normal
Normal Non-normal Residential
residential residential
residential residential property held Commercial
Scenario property held property held
property held property held for less than property
for more than for more than
for 2-5 years for 2-5 years 2 years
5 years 5 years
Key costs
Value-added tax
- - 5% - 5% 5% 5%
(增值税)
Profit after 20% (primary residence
20% OR
deductions exempted) OR
PIT (个人所得税)
Contract 1–3% (primary residence
1–3%
price** exempted)
Profit after
LVAT (土地增值税) #
0% 30–60%
deductions
Stamp duty (印花税) Contract price 0% 0.05%
Ancillary costs
City construction 7% for tax payers located in a city
and maintenance VAT 5% for tax payers located in a county or township area
tax (城市建设税) 1% for tax payers located in other urban regions
Education surcharge
VAT 3%
(教育费附加)
Source: Savills Research
#
LVAT is applicable to the taxable gain based on the proceeds of sales after a number of deductions. **Only applicable if purchase documents indicating the value at the time of
purchase are unavailable. Note: Other fees potentially include but are not limited to: local education surcharges (地方教育附加费) and transaction charges (交易手续费). Please
note: channel maintenance fees levy (河道工程维护费) stopped as of April 2017.
TABLE 20
Individual landlords – leasing taxes and fees
Types of taxes Tax base Tax rate
Scenario Residential Commercial
Key costs
Value-added tax (增值税) Rental income 1.5%
Real estate tax (房产税) Rental income 4% 12%
PIT (个人所得税) Taxable income 10% 20%
Stamp duty (印花税) Contract price Null 0.1%
Ancillary costs
7% for tax payers located in a city
City construction and maintenance
VAT 5% tax payers located in a county or township area
tax (城市建设税)
1% tax payers located in other urban regions
Education surcharge (教育费附加) VAT 3%
Source: Savills Research
Note: Other fees potentially include but are not limited to: local education surcharges (地方教育附加费). Please note: channel maintenance fees levy (河道工程维护费) stopped
as of April 2017. In practice individual landlords will pay a comprehensive tax which covers business, income and real estate tax for the leasing of a residential and non-
residential property. This tax rate will vary depending upon the tax authority and total monthly rental income.
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TABLE 21 against the tax payable in the other, in futures firms, and funds. It does not
Detailed tax bands for PIT this way preventing double taxation. include standard products, such as
Another important factor is the grant bonds and stocks. Included among
Monthly salary (RMB) Tax rate (%) of an exemption or tax at a reduced the 16 cities are Beijing, Shanghai,
Less than 1,500 3 rate on certain receipts such as Guangzhou, Shenzhen, and second-
1,500–4,500 10 interest, royalties, dividends, capital tier cities Xiamen, Nanjing, Hefei and
gains and others that are connected Fuzhou.
4,500–9,000 20
with a transaction carried out between
9,000–35,000 25 parties associated with the DTA. When China State Council circular on
35,000–55,000 30 certain income is taxable under the overseas investment (August 2017)
55,000–80,000 35 Chinese Income Tax Ordinance but China’s State Council, the equivalent
there is an exemption (reduced tax) of the country’s cabinet, issued new
More than 80,000 45
under any taxation treaty, the income rules on overseas investment which
Source: Savills Research
may be taxed, but only according to restrict investment in real estate, hotels
the provisions of the taxation treaty. and other sectors. The top level central
more than 90 days in a calendar government body divides potential
year. The 90-day test is extended Countries include: investment sectors and locates them
to 183 days if the individual is a tax Albania, Algeria, Armenia, Australia, into “encouraged”, “limited” and
resident of a country/region that Austria, Azerbaijan, Bahrain, “prohibited” categories, and directs
has executed a taxation treaty/ Bangladesh, Barbados, Belarus, ministries and local governments to
arrangement with China. Belgium, Brazil, Brunei, Bulgaria, scrutinize and control all outbound
Canada, Croatia, Cuba, Cyprus, investments, in accordance with the
Withholding tax and tax treaties Czech Republic, Denmark, Egypt, guidelines.
International enterprises without Estonia, Finland, France, Georgia,
establishments or places in China Germany, Greece, Hungary, Iceland, New restrictions on property
shall be subject to a unilateral India, Indonesia, Iran, Ireland, Israel, purchases announced in nine cities
concessionary rate of withholding Italy, Jamaica, Japan, Kazakhstan, (October 2016)
tax at 10% on gross income from Korea, Kuwait, Kyrgyzstan, Laos, In early October, Tianjin, Suzhou,
dividend, interest, lease of property, Latvia, Lithuania, Luxembourg, Zhengzhou, Chengdu, Jinan, Wuxi,
royalties and other China-sourced Macedonia, Malaysia, Malta, Hefei and Wuhan followed an
passive income unless reduced Mauritius, Mexico, Moldova, Mongolia, announcement made in Beijing and
under a tax treaty. Morocco, Netherlands, New Zealand, introduced measures to cool the
Norway, Oman, Pakistan, Papua New residential property market, such as
The State Administration of Taxation Guinea, Philippines, Poland, Portugal, raising down payment requirements
released new tax regulations on Romania, Russia, Saudi Arabia, for second homes or banning the
indirect equity transfers by non- Seychelles, Singapore, Slovenia, purchase of second and third homes.
resident enterprises (Bulletin 7), South Africa, Spain, Sri Lanka, Sudan,
providing a broader scope of Sweden, Switzerland, Thailand, Strengthen regulation on real estate
indirect transfer, stricter provisions Trinidad and Tobago, Tunis, Turkey, agencies (August 2016)
on scrutinizing indirect transfers of UAE, UK, Ukraine, US, Uzbekistan, The Ministry of Housing and Urban-
China’s taxable assets, and new Venezuela, Viet Nam and Yugoslavia. Rural Development and six other
reporting obligations. related government departments
Legal issues released guidelines ordering that
Foreign owners were previously The legal landscape pertaining to real housing information should be officially
required to report offshore equity estate in China has changed rapidly verified before being advertised
transfers and pay a 10% withholding and continues to do so, with the by agencies. The guidelines also
tax; however, a lot of the time these regulatory environment considered promised to improve credit information
rules were not enforced. As result, to be significantly complex. Detailed system in the sector and regulate
investors were able to avoid paying below is recent key legislation cooperation between real estate
capital gains taxes on offshore pertaining to real estate. agencies and financial institutions.
holding structures, leading to higher
returns. This new regulation is Asset managers banned from China adopted law regulating asset
expected to result in a noteworthy channelling funds to real estate appraisals (July 2016)
tax obligation increase for foreign investments in 16 cities (February The National People’s Congress (NPC)
sellers, together with an important 2017) Standing Committee adopted a law on
impact on the investment market. The Asset Management Association asset appraisal, the first law governing
of China issued a notice that banned the country’s asset appraisal industry
China is a signatory to a treaty for the asset managers in China from since it emerged three decades ago.
prevention of double taxation with channelling funds into residential The new law allows certified appraisers
many countries all over the world. property investment, in 16 mainland who have passed national exams,
Draft agreements with additional cities, via private equity schemes. The as well as those who have expertise
countries are also in discussion. A ban applies to entrusted loans, trust and hands-on experience in asset
Double Taxation Agreement (DTA), schemes and other shadow banking evaluation, to practice asset appraisal.
in principle, enables the offsetting products offered by asset managers The law provides that appraisal
of tax paid in one of two countries affiliated with banks, securities and agencies should supervise and take
0162018
responsibility for the professional announced in a circular to lower the Cancellation of Housing Purchasing
conduct of their practitioners. minimum down payment requirement Restrictions for 42 Cities (June–
of housing provident fund loans. October 2014)
China bans local government Buyers that already own a property A total of 42 cities have cancelled
from borrowing for land reserve but have no outstanding mortgage their policy of house purchase
(February 2016) can also apply for use of the housing restrictions (HPRs) between June and
The Ministry of Finance, the Ministry provident fund, with a minimum down October in 2014. The policies were
of Land and Resources, the People’s payment of 20%, decreasing from originally introduced in early 2010.
Bank of China and China Banking 30%. Beijing, Shanghai, Guangzhou As a result, only five cities, Beijing,
Regulatory Commission issued and Shenzhen can adopt their own Shanghai, Guangzhou, Shenzhen
a statement that banned local policies, given the different market and Sanya, continue to enforce their
governments from borrowing from conditions. previous HPRs.
banks to finance land purchases and
preparations for property development. The Central Bank has issued loosened State Council’s Circular 17
Local governments must reduce the down payment requirements on first- (February 2013)
number of institutions responsible home buyers. The minimum down The government, in response to
for land reserve, whittling down payment requirement was lowered to rising house prices and red-hot
the many departments to just one. 25% for first-home buyers purchasing transaction volumes, introduced yet
Land reserve institutions should no normal residential property when another round of policy tightening.
longer have financing, construction using mortgages. The new regulation Policies focused on:
or land development arms and these is only applicable in cities without
departments should be closed or implementations of home purchase average sales price targets for
turned into enterprises. restrictions. individual cities (no longer effective);
Simplified registration procedure Supportive policies for the
20% Capital Gains Tax;
for foreign-invested real estate residential sales market (March
companies (November 2015) 2015)
extension of the home purchase
The Ministry of Commerce PBoC, MOHURD and China Banking
restrictions (no longer effective);
(MOFCOM), together with the State Regulatory Commission (CBRC)
Administration of Foreign Exchange jointly announced further supportive
tighter mortgage lending
(SAFE), recently issued a simplified measures for the property market on
standards (no longer effective);
registration procedure for foreign- 30 March 2015.
invested real estate companies.
1) The holding period at which higher increasing land supply;
Foreign-invested real estate companies
will no longer need to go through the rates are applicable was shortened
filing procedure with MOFCOM or from five years to two years. increasing social welfare housing.
display their company’s information on
the official MOFCOM website. 2) Down payment requirements for Land and property registration
second-home buyers were reduced The Property Law proposes that
Foreign investment rules rolled to a minimum of 40%, including those China’s real property registration
back (November 2015) who have not fully repaid their first system be unified nation-wide and
Six governing ministries, including mortgage – down from the previous property rights holders and interested
People’s Bank of China (PBoC) and 60-70%. First-home buyers were also parties may apply to retrieve the
MOFCOM, issued a statement on allowed to use a housing provident information filed with the registry.
27 August 2015 detailing the rolling fund with a minimum of 20% down Currently, information on land-use
back of restrictions put in place to payment. Buyers that already own rights, building ownership and
curb foreign investment in the Chinese a property, but have no outstanding mortgage rights may be separately
real estate sector. The two key points mortgage, can also apply for use of filed with different local real estate or
include: 1) the dropping of restrictions the housing provident fund, with a construction administration authorities.
requiring individuals to have resided in minimum down payment of 30%. That information is usually not
China for more than one year before accessible except with the registrant’s
purchasing a property (as long as it is Removal of all restrictive written consent. The new law therefore
still for self-use); and 2) The lowering regulations on Foreign Investment ought to facilitate searches on title and
of registered capital requirements Industrial Guidance Catalogue related property rights. However, it
for foreign-investment real estate (March 2015) remains unclear whether just anybody
enterprises, while at the same time MOFCOM has released the 2015 will be entitled to search the registry
foreign investors will not need to pay Foreign Investment Industrial or whether applicants must establish
their registered capital in full before Guidance Catalogue, covering some relationship to the property
borrowing loans locally. three main types of foreign-invested at issue. Implementation of these
enterprises: wholly-foreign owned; provisions of the Property Law will
Loosened down-payment equity joint venture; and cooperative need to be monitored closely.
requirements (September 2015) joint ventures. All restrictive lists
The Ministry of Housing and Urban- regarding real estate investment have Foreign exchange controls
Rural Development (MOHURD), been completely removed from the In addition to the hurdles presented
Ministry of Finance and PBoC jointly new guidance catalogue. by legislation outlined previously,
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