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Foreign Purchase of Real Estate for Business Uses Allowed in Shanghai
The eastern Chinese metropolis of Shanghai has decided to remove the last remaining barrier hindering foreign businesses and individuals from purchasing or leasing real estate in the city.

The municipal real estate and land resources administration has issued a notification which effectively permits the purchase and leasing of real estate for business purposes.

The new regulation, which will take effect on March 1, specifies that foreign businesses and individuals can purchase all types of real estate in Shanghai, except for those under special state or municipal regulations.

The municipality abrogated its restriction on the purchase of residences by foreign nationals in July, 2001. The decision has triggered a sharp rise in real-estate sales among foreigners in Shanghai, officials say.

According to statistics, foreign businesses and individuals purchased 578,100 square meters of housing in 2001, a 67.8 percent rise over 2000, when the restriction was still in effect. The figure rocketed to 1.041 million square meters in 2002, up 80 percent over the previous year.

(Xinhua News Agency February 14, 2003)

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