Foreign-funded property agencies operating in the mainland are scrambling to obtain clear rulings of how their business might be affected by the 'Catalogue of Guidelines on Foreign Investment' issued by the central government last week.
The guidelines, issued by the National Development and Reform Commission last Wednesday, for the first time included the sector in a restricted category for foreign investors.
Existing players say it remains unclear if the new rule covers them as well as prospective entrants. First issued in 2004, the guidelines that were updated last week classify industries in the mainland into three categories: prohibited, restricted and encouraged.
The revised list taking effect on December 1 also restricts foreign investment in businesses such as the mining, manufacturing, retailing and financial sectors, according to a document published on the NDRC website on Wednesday.
'There is only one line in the revised guidelines saying foreign investment in the real estate brokerage or agency companies will be restricted,' said Andy Lee, a general manager of Centaline (China) in Shenzhen.
'So it is difficult to evaluate the impact. We have contacted local government officials but they have not yet received any instructions on how to implement the guidelines. Whether it will only affect newcomers or include us, I don't know.'