The municipal governments of Beijing and Shanghai passed new regulations increasing restrictions on home purchases in an effort to cool the housing market, Bloomberg reported. In Beijing, single-person households will not be allowed to purchase more than one residence, while in Shanghai banks will not provide credit to those buying a third home. The government of Shanghai also said that it would be increasing the down payment and interest requirements on mortgages of second-homes. In both cities, a 20% capital gains tax will be placed on all real estate sold. Home prices in Beijing increased 5.9% year-on-year, while in Shanghai they increased by 3.4% during the same period.
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