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Foreigners may be allowed to purchase more than one property in Shanghai for "self use," if the local government sets the property purchase limit on the number of "valid" identification cards they can provide, Shanghai Security News said today.

Chinese residents from Hong Kong, Macau and Taiwan as well as overseas nationals will also follow this local regulation, a foreign investment unit in the city told the newspaper yesterday, citing a city government draft regulation on foreign investment in the city's property market.

The draft says Hong Kong residents' "valid" identification cards include their Home Return Permit, Hong Kong Identification Card and Hong Kong Passport. Taiwan residents can provide their China Re-entry Permit for Taiwan Compatriots and Taiwan Identification Cards.

Shanghai Notary Public Office will be responsible for monitoring the approval and effectiveness of the identification card the overseas buyers' provide, said the draft.

Properties purchased before the final regulation will not be included, the draft said.

Relevant departments from city's government are discussing the final definitions of "self use" and "effective identification card." They will solicit suggestion from major overseas property agencies and banks in the city like Morgan Stanley, Debenham Tie Leung and ING Band NV, the newspaper said.

The central government unveiled a string of new policies to raise the threshold for overseas investors in China's property market and strengthened supervision. Foreigners will not be allowed to buy homes or apartments in China until they've been here at least a year.

Shanghai, Beijing and Guangzhou are the most popular markets for overseas investors and institutions in real estate. Beijing, however, has been strictly following the policy "one purchaser, one property" since July 21, said the report.

(Shanghai Daily August 2, 2006)