China may extend the implementation of property curbs to third and fourth-tier cities to contain the risk of property bubbles, after developers and investors flocked inland following the clampdown on property prices, according to the report of Shanghai Securities News.
Beijing plans to expand the scheme it has implemented to dampen property investment by restraining the prices of certain homes, while enabling developers to bid up land prices.
Any new move taken by China to control its real estate market underpins the government’s effort to cool home prices, which were fuelled by a housing shortage and increasing incomes.
In Beijing and Shanghai, the government has already imposed a series of property curbs that include property taxes, home purchase restrictions and higher down payments.
Currently, 36 cities have announced restrictions on home purchases. the tightening measures have forced property developers to move further inland, causing land prices to jump in less affluent cities.
Earlier reports from the media revealed that the Chinese government may introduce new measures to further cool the real estate sector, such as amending property price targets set by local governments.
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