Farglory Land Development, Taiwan’s largest developer, is in talks with China’s Country Garden Holdings to jointly develop land in Taipei as the island may be set to allow mainland investment in real estate.

The two companies are looking for land on which to build housing, said Janice Tsai, a spokeswoman for Taipei-based Farglory. There’s been no discussion of Country Garden making an equity investment in Farglory, she said.

New rules allowing mainland Chinese to buy Taiwan real estate may be issued within two weeks, the Economic Daily News reported today. The change may mean Farglory can sell commercial and residential projects to mainlanders as the global recession crimps local demand.