Beijing, Shanghai increase property restrictions

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.