CHINA WANTS YOU?

China may make it easier for overseas investors to buy property there..... again.

A slump in foreign investment in its economy is worrying Beijing, because so many jobs depend on it. If red tape is cut, and foreign investors are given more freedom to buy Chinese property, then luxury home prices will rise by as much as 30 per cent, estate agents say.

Demand for des res abodes in big cities like Shanghai has risen sharply in the last couple of months, because Chinese HNWIs and investors are seeking safety in property from the turmoil in stocks and shares, and rising inflation. Foreign investors who can circumnavigate the bureaucracy are buying too.

Beijing's policies towards foreign investors tend to yo-yo back and forth, from encouraging them when times are bad to discouraging them when a speculative bubble appears, so if the government does relax its rules again, and you want a toe-hold in the world's third largest economy, then make the most of the opportunity while it lasts.

In Hong Kong, pictured here, where foreigners can buy property freely, flat and house prices have been rising since the start of 2009.

(All The World's a Home: Global Property News)