In response to concerns about slowing economic growth, China has relaxed restrictions on property purchases for foreigners. Since 2015, expats have been allowed to invest in property beyond personal use, and the previous rule requiring foreigners to live in China for a year before buying property has been abolished. However, in cities like Shanghai and Beijing, foreigners are still only permitted to purchase a single property.¹

A Changing Market

The COVID-19 pandemic had a significant impact on China’s housing market, with some of the largest decreases in housing prices seen globally. Between mid-2019 and mid-2020, the market experienced a -5.1% change in mortgage as a percentage of income and a -6.2% change in price-to-income ratios, making home ownership relatively more affordable.² As a result, house sales surged in 2020, likely due to buyers taking advantage of lower prices and affordable mortgages. At the same time, renting in city centers became more attractive, as price-to-rent ratios increased both inside and outside city centers.²

Buying a House

Foreigners interested in purchasing property in China should work with a developer or agent. It’s important to note that all residential land in China is leased for 70 years, so no one has full ownership rights. If the government requires the land, it can issue a compulsory purchase order.³

The buying process typically involves submitting a formal offer and payment schedule, paying a 1% deposit upon acceptance, and then securing financing. Expats can obtain mortgages from foreign-owned banks, and recent changes mean registration fees are no longer required for property purchase loans. After legal checks and a notarized contract, buyers pay a further 30% deposit, with the remaining 70% due upon completion.³

Practical Considerations

All contracts must be notarized for foreign buyers, and it’s strongly recommended to have a bilingual legal representative to translate and guide you through each stage of the process.³

1. “Average Salaries in China for Locals and Expats in 2025,” FDI China, https://fdichina.com/blog/average-salaries-in-china/, accessed December 31, 2025.
2. “Cost of Living in China - 2025,” Exiap, https://www.exiap.com/guides/cost-of-living-in-china, accessed December 31, 2025.
3. “China Living Costs Complete Guide 2025,” Shushanzhi, https://www.shushanzhi.com/p/china-living-costs-complete-guide-2025/, accessed December 31, 2025.
4. “China Loan Prime Rate,” Trading Economics, https://tradingeconomics.com/china/interest-rate, accessed December 31, 2025.