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Fresh curbing policies' impact on China's housing market

CCTV.com

10-10-2016 16:17 BJT

A number of Chinese cities have implemented tougher regulations concerning mortgages and housing purchases during the past week. Analysts say curbing speculation was the main motivation.

Over 20 Chinese cities have issued new regulations concerning their housing markets since the end of September. The rules vary but their features are almost the same. To stop increasing prices from rising too fast and too high.

The list includes first tier cities Beijing and Shanghai and second tier cities including Nanjing and Hefei. Analysts say the swift moves by the different governments may not be over.

"The list of curbing measures will surely expand. I believe there will be more cities joining the list this month or this quarter, to launch their own curbing measures," said a real estate analyst Deng Haozhi.

Some first-tier cities such as Guangzhou have not put out new rules, but have vowed to commit to existing curbing measures. Still, analysts suggest there is room to upgrade the rules.

Deputy director of Guangdong real estate industrial research association, Han Shitong, said, "Guangzhou has room to adjust. For instance, it should change the land auction process and it could also expand the curbing measures from the city to surrounding counties."

The wave of regulations started in several second-tier cities, where housing prices gained as much as 20% in August year on year. Other large cities such as Shanghai and Beijing with strict rules already in place, followed suit with fresh regulations.

Analysts believe the fresh regulations are a cautious move to guard against bubbles in the sector. Others say there is more to do if the government wants to stem rising prices. That includes adjust land supplies and the money supply.

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