Beijing is set to order China's second and third-tier cities sell only one homes to buyers, in an expanded effort to curtail housing hoarding and profiteering and rein in steep rises in property prices.
A top official from the Ministry of Housing and Urban-Rural Development was reported as saying that cities including Qidao, in East China's Shandong province, Xi'an in Northwest China's Shaanxi province, and Nanning, in southwestern China's Guangxi Zhuang autonomous region will be included in the government's new plan to curb property bubbles from growing in the country.
Source: People's Daily http://english.peopledaily.com.cn/90001/90776/90882/7269847.html
Buying a property in China may be getting a little more difficult for the foreigner.
China is tightening regulation on foreign investment in the real estate sector to crack down on speculation, according to a statement from the China Ministry of Commerce in December 2010.
The ministry urges local authorities to increase checks and supervision on property investment that involved foreign investors and strengthen risk controls on the sector, said the statement posted on the MOC website.
Minister of Housing and Urban-Rural Development Jiang Weixin said at a national conference that China will crack down on speculative home purchases and curb excessive growth in property prices next year.
The government will also strengthen the implementation of tightening measures unveiled in 2010.
The country has rolled out a string of tightening measures to cool the market, including suspending mortgages for third-home purchases, speeding up trials of property taxes, raising down-payment requirements for first-time home buyers and only allowing foreign citizens living in China to buy one home for their own use, which have "helped contain speculative demand to some extent", Jiang said.
Both property sales and prices are on the rise, according to a real estate research institute of China's Soufun Holdings.
The average price of housing in 100 Chinese cities rose 0.82 percent to 8,487 yuan (US$1,274) per square meter in November month-on-month, while the price in eight major cities including Beijing and Shanghai during the same period increased 0.41 percent to 15,407 yuan (US$2,313) per square meter, according to the institute's statistics.
The two reasons behind the rising property prices are increasing inflation pressure and foreign capital entering China on expectations that the yuan will appreciate, Yang Hongxu, a researcher with the Shanghai-based E-house China Research and Development Institute, said.