Beijing intensifies property market clampdown

Non-local residents must prove they have paid taxes in Beijing for five years before they can purchase a home in the city under new rules aimed at reining in price growth, the South China Morning Post reported. Other cities usually require just one year’s worth of tax records. In addition, Beijing has stipulated that non-local residents will be banned from buying second homes, while local residents are prohibited from purchasing more than two apartments, state media reported. The new rules reflect the government’s ongoing concerns about price bubbles in the housing market, and its desire to limit the impact of speculation. Shanghai and Chongqing recently introduced pilot property taxes, which are seen as a means of slowing price growth. Last month the State Council also raised the down-payment requirement on second homes to 60% of the sale price, up from 50%.