Shanghai's residential market is expected to feel more pressure as the authorities have announced details on how to implement the central government's directive restricting foreigners from buying more than one home. From January 1, foreigners including those from Hong Kong and Taiwan will be prohibited from buying a second residential unit for investment. Christina Lam, a general manager at Daily Fine Property, said the residential sale and leasing market will be hit hardest. 'Such measures have adversely affected investment sentiment, and we close few deals these days,' Ms Lam said. The restriction, whose primary motive was to weed out foreign speculators blamed for fuelling prices in the residential market, also extends to the office and retail sector, she said. In July, the central government introduced rules aimed at restricting foreign investment in the property sector after concerns that overseas 'hot money' had fuelled market speculation. The rules state that foreign buyers and companies that have resided in China for less than a year cannot buy residential properties for personal use. Foreign institutions and individuals buying mainland property not for personal use must register a company for the purchases.