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.
The lessons from history are that whenever the housing bubble surges, the national economy surfers. The recent one was the bubble before the 2008 crises in USA. The older one had been Japan, Japan economy surfers 20 years depression, good things are the property price has been in historic low for decades. In HK, the impossible property price has driven other business to death. China must control down its property market , in case its industry surfers, it has no.1 size of population, no one could help its job hungry but itself.