Shanghai says 'no' to house speculators

Shanghai is trying hard to stop non-resident investors buying houses in the city.

The Shanghai government has released a notice requiring the real estate administrative department, jointly with public security and other departments, to formulate house-purchasing policies based on a permit system for non-Shanghai residents.

The new residential permit is Shanghai's 'green card,' with which people from other provinces and cities of China but residents in Shanghai are able to enjoy treatment close to the same as local residents. Only those people the city needs will be granted such a card.

Non-resident speculators buying houses in Shanghai are strong in the market and are affecting prices. People from Wenzhou, for instance, Shanghai's neighboring city, have formed investment groups to buy houses in Shanghai. These groups, having accumulated capital, have each acquired multiple houses or apartments in the Shanghai area. As a result of these and others, Shanghai's housing prices have soared. Between 2002 and 2007 the average price doubled. Shanghai's prices are among the highest in China.