In a contradictory sign that the Chinese government is not serious about slowing property price growth, today Beijing has banned foreign companies and off plan buyers from purchasing villas. This is widely interpreted as insincere as foreign investors are hardly on China’s radar anymore having dropped from almost 40% of buyers in 2007 to approximately 1% in 2010.
Some are even saying that the market could interpret the move to prohibit villa sales as a green light to purchase as not many foreign companies are currently purchasing villas. The market is looking for clear direction from Beijing and this move is disappointing to those who thought that the government is trying to slow 2010’s incredible capital gains and put home ownership further out of reach to the average citizen.
