Cities try cool­ing down hot new home prices

China Daily (USA) - - TOP NEWS - By WU YIYAO in Shanghai wuyiyao@chi­

More cities in China are ex­pected to in­tro­duce re­stric­tive mea­sures to dampen spec­u­la­tive buy­ing and curb soar­ing prop­erty prices, ac­cord­ing to an­a­lysts. On Monday, Hangzhou, cap­i­tal of Zhe­jiang prov­ince, im­posed lim­its on sec­ond home pur­chases for buy­ers with­out a city house­hold reg­is­tra­tions. Ear­lier this year, four other cities — Nan­jing, He­fei, Suzhou and Xi­a­men — an­nounced mea­sures to cool the res­i­den­tial prop­erty mar­ket, such as in­creas­ing the down pay­ment re­quire­ments for sec­ond homes or even bar­ring the pur­chase of sec­ond and third homes. In these cities, the av­er­age price of com­mer­cial res­i­dences has been ris­ing by more than 30 per­cent yearon-year, and the new pack­age of re­stric­tions could spread to other cities with sim­i­lar price rises, said Ding Zuyu, an an­a­lyst with realty re­search firm CRIC In­for­ma­tion Group. Ding said pro­vin­cial cap­i­tals and sec­ond-tier cities close to re­gional eco­nomic hubs are most likely to be hit by the cool­ing mea­sures, be­cause their hous­ing prices con­tinue to rise amid shrink­ing prop­erty in­ven­tory and land sup­ply and a swelling ur­ban pop­u­la­tion. Ac­cord­ing to the Na­tional Bureau of Statis­tics on Monday, the price of new com­mer­cial res­i­dences in Au­gust rose in 64 of the 70 cities it mon­i­tors, com­pared with 51 in July. Prices re­mained un­changed in two cities and fell in only four. Home buy­ers say they have felt the pinch of fast-ris­ing prices and they ex­pect more poli­cies to be in­tro­duced to curb spec­u­la­tive buy­ing. “Home prices are ris­ing so fast that you don’t even have enough time to com­pare, con­sider or hes­i­tate. Mon­thon-month home price growth can hit dou­ble dig­its in some cases, so you re­ally need to make a quick de­ci­sion on choos­ing the res­i­dence you might spend the rest of your life in, said 52-year-old Wei Jingdi, a high school teacher and home buyer in Suzhou, Jiangsu prov­ince. “If spec­u­la­tive buy­ing is curbed, prices will rise more slowly and sup­ply and de­mand will be bal­anced. Home buy­ers will feel much more re­laxed,” Wei added. Xia Dan, an an­a­lyst at Bank of Com­mu­ni­ca­tions, said the lack of in­ven­tory and land sup­ply in some cities calls out for pol­icy changes, and cities that tight­ened poli­cies in the past year and have re­laxed the curbs this year may con­sider go­ing back to tight­en­ing.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.