New measures have been introduced to curb speculation in the housing market in various cities. Photo: Reuters

Shenzhen, Hangzhou, Xi’an, Chengdu and 11 other cities in China have put forward new rules to combat growing speculation in the housing market, signalling the launch of a new crackdown, Yicai.com reported.

On March 31, the Hainan provincial government imposed a purchase limit, which stipulated that non-local residents could only purchase one unit of housing, and the downpayment should be no less than 70%. Those who breach that limit will be banned from buying homes in Hainan for five years.

Meanwhile, Hangzhou and Xi’an municipal governments both announced that they will adopt a commercial housing lottery system. While the Chengdu municipal government said families without commercial housing will have priority to draw lots.

At present, six cities, including Shanghai, Nanjing, Changsha, Chengdu, Hangzhou and Xi’an have joined the lottery system for home purchases.

Zhang Dawei, chief analyst of Centaline Property Agency, believes that tier 1 and 2 cities may continue to upgrade regulations in the areas of housing provident fund policies, the supply of houses, joint-property housing and leasing policies.

In addition, more tier 3 and 4 cities may also impose restrictions on sales as the market heats up.

One reply on “Cities move to upgrade restrictions on home purchasing”

Comments are closed.