China Cities Tighten Home-Sale Rules to Tame Property Market

Several large Chinese cities including Shijiazhuang, Chongqing, Nanchang, Nanning and Guiyang are imposing restrictions on home resales as part of the nation’s campaign to cool its heated property sector.

Chongqing will ban sales of new and existing residential properties in downtown areas within two years of purchase, according to a statement on the city’s housing authority website. The move seeks to curb speculative investment and boost healthy development of the property market, it said late Friday. The measure takes effect from Sept. 23.

Shijiazhuang, capital of Beijing’s neighboring Hebei province, prohibited the resale of homes within five years of buying, the local government said Saturday, and Nanchang, capital of Jiangxi province, will cap sale prices and ban resales for two or five years after purchase, depending on the type of property, the city’s housing authority said in a statement.

Guangxi capital Nanning prohibited companies from reselling residential properties for two years after purchasing them, while cited a local government document in Guiyang, Guizhou province, as saying a ban had been imposed on the resale of new properties for three years after the purchase.
Source: Bloomberg