Buying property in Shanghai, like anywhere else in the world, is a serious, long-term commitment. As the city’s economy continues to boom and new apartment complexes stand purchased but empty, government officials are trying their best to cool the market and curb speculation. Regulations constantly change, especially where foreign buyers and sellers are concerned.

For now, foreigners can only purchase one residential property and must live in Shanghai (with a residence permit) for one year before the date of purchase. Additionally, you must pay a 20% capital gains tax if you sell within the first five years (capital gains is the term for the owner’s remaining profit after the sale, minus sales costs and expenses). Buying space in Shanghai is no longer a short-term proposition, but experts say there is another 10 years of growth in the city’s real estate market and money can still be made if the buyer is willing to hold on to the property. Regardless, an apartment in the downtown of a major world city will always be in demand.­­­­