Thursday 28 July 2011

Shanghai tightens property market rules

Shanghai authorities will inspect home sale plans from real estate developers and may reject applications if they find prices to be “unreasonably” high, in its latest effort to fight rising house prices.

1 comment:

Guanyu said...

Shanghai tightens property market rules

Reuters in Shanghai
27 July 2011

Shanghai authorities will inspect home sale plans from real estate developers and may reject applications if they find prices to be “unreasonably” high, in its latest effort to fight rising house prices.

The move, which was announced on the Shanghai government’s housing bureau website on Tuesday, comes after China’s cabinet last week extended home purchase restrictions to more cities and reminded local governments to keep in place measures to tighten the property market.

Shanghai officials will inspect sale plans submitted by real estate developers, and any new residential properties with “unreasonably” high prices may fail to receive government approval for sale, according to a statement.

New home prices in Shanghai, the country’s most populous city, climbed 2.2 per cent last month, compared with a rise of 1.4 per cent in May, the National Bureau of Statistics said.

The city has already banned purchases of multiple homes. Locally registered families who already own two homes, and families registered elsewhere who already own one home, are not allowed to buy more property.

Shanghai also tightened rules on home purchases by families without a residence permit from the city.

The ruling Communist Party, acutely aware of public anger over unaffordable housing prices, has redoubled efforts since last year to rein in property inflation and speculation.