New hous­ing re­stric­tions an­nounced

China Daily (USA) - - CHINA - By FAN FEIFEI fan­feifei@chi­nadaily.com.cn

In the past four days, lo­cal gov­ern­ments in nine cities have an­nounced new re­stric­tions on prop­erty pur­chases, de­signed to dampen spec­u­la­tive buy­ing and curb soar­ing prices.

At the week­end, Tian­jin, Suzhou, Zhengzhou, Chengdu, Ji­nan, Wuxi, He­fei and Wuhan fol­lowed an an­nounce­ment made in Bei­jing late Fri­day night. They in­tro­duced mea­sures to cool the res­i­den­tial prop­erty mar­ket, such as rais­ing down pay­ment re­quire­ments for se­cond homes or ban­ning the pur­chase of se­cond and third homes.

In the past few months, av­er­age prices of com­mer­cial res­i­den­tial prop­erty in the cities have reg­is­tered dou­ble-digit, year-on-year rises. In Au­gust, Zhengzhou, in He­nan prov­ince, saw the coun­try’s fastest monthly surge in the prices of new com­mer­cial res­i­dences and pre-owned homes.

Ac­cord­ing to the Na­tional Bu­reau of Statis­tics, the av­er­age prices of new homes in 70 ma­jor cities rose 9.2 per­cent year-onyear in Au­gust, from 7.9 per­cent in July. More than 90 per­cent of the cities saw prices rise on a monthly ba­sis.

In­dus­try ex­perts said cities, in­clud­ing Fuzhou, Dong­guan, Zhuhai, Shi­ji­azhuang and Qing­dao, where home prices have seen run­away growth, are also likely to tighten rules for home pur­chases

Yan Yue­jin, re­search di­rec­tor of a think tank at the E-House China R&D In­sti­tute, a real es­tate re­search agency, said the new poli­cies will re­strain over­heat­ing home prices in some pop­u­lar ar­eas, and hous­ing trans­ac­tions in some cities are likely to fall in the se­cond quar­ter of next year. How­ever, home prices are not likely to see sub­stan­tial de­clines be­cause of the shrink­ing prop­erty in­ven­tory and land sup­ply, plus a swelling ur­ban pop­u­la­tion, Yan said.

On Mon­day, as part of its ef­forts to curb spec­u­la­tion, the Min­istry of Hous­ing and Ur­ban-Ru­ral Devel­op­ment is­sued a list of 45 hous­ing devel­op­ers and agents ac­cused of hoard­ing, price rig­ging and other mal­prac­tices.

The Bei­jing gov­ern­ment on Fri­day an­nounced that down pay­ments for first-time home­buy­ers should be no less than 35 per­cent, up from the pre­vi­ous level of 30 per­cent, while those for pur­chases of se­cond homes should be no less than 50 per­cent.

The land sup­ply for so-called self-use houses, which are sold to qual­i­fied fam­i­lies at a price ceil­ing im­posed by the gov­ern­ment, will be in­creased, the gov­ern­ment said.

“These mea­sures (in Bei­jing) will af­fect po­ten­tial buy­ers who are keen to buy a bet­ter house by en­hanc­ing the in­vest­ment thresh­old and uti­liz­ing fi­nan­cial lever­age,” said Guo Yi, mar­ket­ing di­rec­tor at Ya­hao Real Es­tate.

Be­fore the new reg­u­la­tions, the down pay­ment re­quire­ment for pre-owned houses in Bei­jing had reached 40 to 60 per­cent of the to­tal price, Guo said.

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