Apartment buildings in Shanghai. Photo: iStock
Apartment buildings in Shanghai. Photo: iStock

Shanghai city has carried out a new rule to tighten the sale of commercial housing , The Paper reported. Enterprises that intend to purchase commercial housing must fulfill three conditions.

The company must have been established for five years, have more than 10 employees and, have paid their social insurance for at least five years.

Also, the total amount of tax paid in Shanghai should reach one million yuan (US$150,000). However, if a company pays more than five million yuan in tax, it is not subject to the conditions for the established years and the number of staff.

Meanwhile, buyers are required to own the property for more than five years before they sell it, compared to the previous holding period of just three years.

The new regulation is effective from July 3 onward.