Here Is How Some Countries Are Taming Sky-High Property Prices

When an economically thriving country attracts talent from outside, its real estate market invariably undergoes a change. Foreigners, who come to this nation would look for a house, pushing the demand. This demand in turn would inflate property prices. Resultantly, natives will also have to bear the brunt of this inflation in property prices. This is precisely why property prices in some prominent country of the world hit the roof in the recent past, causing great uproar among citizens. Subsequently, measures were launch to tame property prices across.

Now, let us look at what authorities in different countries have done to tame property pricing.

China

Chengdu, Jinan, Wuhan and Zhengzhou are four cities in China that have come up with restrictions in the past couple years. In Chengdu, for example, buyers are allowed to purchase only one property in certain districts. If one wishes to go a second property, at least 40 per cent of the property value must be paid as upfront. Authorities are also penalising developers who are hording land parcels without constructing anything.

In Jinan, people cannot buy more than three properties. First-time home buyers are also liable to pay 30 per cent of the transaction value as down-payment.

To buy property in Wuhan, one must be in a position to bear half the cost upfront. First-time homebuyers must also pay at least 25 per cent of the property value as down-payment. Those buying their third purchase cannot apply for a home loan.

In Zhengzhou, if you are a resident and own two properties or if you are a non-resident with one property, you could buy properties larger than 180 square metre (sqmt) only.

Thailand

You cannot own land in Thailand if you are not a native. If a foreigner is interested in doing so, they have two options. They can either buy it on a 30-year lease period or purchase it through a limited company.

In housing projects, only 49 per cent units could be sold to non-Thais. Law mandates that 51 per cent of units must be sold to Thai nationals only.

However, a foreign national could buy a condominium on freehold basis.

Canada

If an outsider plans to buy land in Canada, he may not be able to claim a freehold piece without taking a special permission. Then, there are other restrictions, too. Non-residents cannot buy more than five acres of property in Prince Edwaed Island, for instance. In Saskatchewan, foreigners cannot buy more than 10 acres of land.

Croatia

In Croatia, a foreigner can buy land if they have an approval from the Ministry of Foreign Affairs. This is, however, a time-taking process. To cut down that time, one might consider buying land through a private company.

New Zealand/Australia

With the Overseas Investment Amendment Bill, only residents and permanent citizens can purchase a home in New Zealand and Australia. Non-residents could stick to newly built properties or seek permission from the Overseas Investment Office. Authorities say that the move is to ensure housing affordability.

United Kingdom

As of now, there are no curbs on foreigners buying homes in the UK. However, a study undertaken recently showed that six out of 10 newly built homes in the UK are being bought by an Asian. Between 2014 and 2016, 3,600 new homes were bought by foreign investors. Putting a cap on them would reduce the competition faced by natives.