The Chinese government has announced tighter rules to limit purchases of multiple homes in Beijing, in an attempt to curb escalating real estate prices.
Under the new rules, which are based on the guidelines issued by the central government in late January, only those who have residency permits in the Chinese capital will be permitted to purchase a second home.
Those who already have two or more homes will be prohibited from purchasing additional properties.
Individuals who do not have residency permits can purchase their first home in Beijing only if they can provide tax and social security certificates to prove that they have lived in the city for over five years.
The new rules could affect at least 10 million non-registered residents in the capital and further cut housing demand, said analysts.
The central government has announced successive tightening measures since 2009, in an effort to rein in the red-hot real estate market, which includes higher mortgage rates and down-payments, as well as limiting home purchase.
The cities of Chongqing and Shanghai introduced China’s first-ever tax on home ownership in January, highlighting the government’s determination to curb real estate inflation.