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Dalian takes unusual steps  to contain home prices

Dalian

DALIAN, one of the most developed cities in China's north, is going to unprecedented lengths to keep a lid on home prices.

According to an official news agency report on Wednesday that quoted a local-government statement, all home builders in the city must now seek sales approval by inputting an apartment's proposed price into a centralised computer system. Prices must be lower than the bottom price for similar dwellings sold in May and June, and any higher prices won't be be entertained.

There's also a limit on what's too low - selling an apartment for more than 5 per cent cheaper is prohibited as well. Dalian's government will even bring in a third-party appraisal firm to help developers do their math, and those that don't follow the system will be banned from the city.

sentifi.com

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It's yet another example of the sometimes extreme lengths authorities in China will go to control the nation's real-estate sector. Other restrictions have included banning anyone not born in a particular city from purchasing property there, or barring anyone who's single or even just getting a divorce. BLOOMBERG