Chinese cities restrict home sales by buyers to fight speculation
[BEIJING] At least twelve major Chinese cities are requiring newly bought homes to be held for at least two to three years before they can be sold, the first time ever that cities in the country are taking such measures and suggesting intensified government efforts to cool the red-hot property market.
The cities of Dongguan and Yangzhou - two major Chinese cities near the technology hub of Shenzhen and the financial hub of Shanghai, respectively - joined the list of cities seeking to restrict property supply to crack down on short-term speculation.
Home owners who received property ownership certificate to their properties less than two years ago are not allowed to sell them in Dongguan and Yangzhou, effective Tuesday, according to the respective official statements posted on each government's website.
Yangzhou's new rules, though, were slightly more relaxed compared to Dongguan's as they only applied to sellers with two or more properties in the city.
These kinds of restrictions were the first such in the Chinese government's intervention history, analysts said, with some calling it a major policy innovation.
"These measures hit speculators looking for short-term gains very hard," said Beijing-based chief analyst Zhang Dawei with Centaline, a property agency.
The new curbs came as China has stepped up the fight to contain rebounding home price growth in recent months, with at least 50 Chinese cities slapping harsher measures such as raising downpayment ratio for second-home buyers since mid-March.
The south-eastern port city of Xiamen was the first Chinese city to introduce such bans on property sales in late March.
Since then, 11 other cities - Fuzhou, Qingdao, Hangzhou, Guangzhou, Zhuhai, Huizhou, Changzhou, Changle, Qidong, and now Yangzhou and Dongguan - have followed suit by adopting similar rules, Centaline estimated.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
DBS puts 46 retail units, HDB shops on market for S$210 million
US mortgage rates jump above 7% for the first time this year
Far East Shopping Centre back on market at unchanged S$928 million asking price
London mansions sold at 30% discount spell gloom for luxury market
Delfi Orchard up for collective sale at S$438 million guide price
US existing home sales drop in March; median price increases