For China’s real estate sector, the last 18 months has been a relatively quiet period on the legislative front. It has nonetheless witnessed continued efforts by the PRC authorities to control the property market. This client alert reviews some of the efforts and discusses opportunities in some niche areas of the real estate market.

A key theme since the end of 2010 has been efforts to cool the residential market. The price of housing in China’s cities has come down from the lofty heights achieved in 2011, but the Chinese government continues to remain concerned about the lack of affordable urban housing. PRC authorities have implemented a series of policies and regulations building upon restrictions first put in place in 2006 through promulgation of Circular 171. (See our July 2006, February 2007 and January 2011 client alerts on Circular 171 itself and subsequent measures.)