China’s second- and third-tier cities are set to face their first set of property cooling measures, according to a report by Shanghai Securities News.
The report revealed that the Ministry of Housing and Urban-Rural Development has laid out five standards that will be used to implement the cooling measures. These standards include cities where most of the home buyers are non-residents, a large number of transactions in H1 2011, the sharpest price increases based on the ministry’s list of 70 second- and third-tier urban centres, sudden price increases in July from June and where high prices are causing dissatisfaction among the public.
The report noted that the government will implement home buying restrictions in any city that meets two or more of the five criteria.
Meanwhile, high price growth has been recorded in some Chinese cities, including Changsha, Dandong, Kunming, Lanzhou, Luoyang, Mudanjiang, Nanchang, Qinhuangdao, Shenyang, Shijiazhuang, Urumqi and Xining.
Wang Juelin, a ministry researcher, said the implementation of “home purchase limits is reasonable to protect the consumers.” He said that home purchase limits will remain a policy of the government until next year, if prices continue to climb.
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