Apartment buildings in Shenzhen, China. Photo: iStock

The Shenzhen government is stepping up regulations to rein in the housing market, as enterprises are now suspended from purchasing commercial housing in the city, The Paper reported.

According to the new rules issued on Tuesday, enterprises, social organizations, as well as other legal entities cannot buy newly built and second-hand housings in Shenzhen. Those who have signed contracts online before Tuesday, will be allowed to complete the transaction.

Meanwhile, newly purchased business apartments by individuals, enterprises or social organizations shall be prohibited from being transferred within five years from the date of obtaining the real estate registration certificate.

As for newly purchased residential housing, the transfer is prohibited within three years from the date of obtaining the certificate.

Also, to crack down on speculation in the housing market via fake divorces, the new rules suggest that for purchasers who apply for commercial housing loans or provident funds within two years of his or her divorce, the down payment ratio shall be no less than 70%.

Asia Times Financial is now live. Linking accurate news, insightful analysis and local knowledge with the ATF China Bond 50 Index, the world's first benchmark cross sector Chinese Bond Indices. Read ATF now.