[photopress:shanghai_apartments.jpeg,full,alignright]The Shanghai housing watchdog has initiated tough new rules to stop developers sitting on large parcels of real estate and selling small lots while awaiting a property upturn. Now we can wait to see them implemented.
The rules are that developers of new residential properties with an aggregate built-up space of under 30,000 square meters ready for pre-sale are now required to launch their sales activities in one batch.
Xue Jianxiong, head of research at the Shanghai Youwin Real Estate Information Service said, ‘The rule, probably the toughest of its kind introduced so far by the local government, is supposed to help ease the current tight market supply to some extent because many developers deliberately prolong their sales period as housing prices continue to go north in the city.’
Industry insiders suggest that developers — big and small — prefer to sell properties in small amounts even though much more is available for pre-sale.
In many cases, only dozens of units are introduced to the market at one time, and it is not uncommon for sales periods for some new residential projects to last as long as several years.
Now heavy penalties apply for illicit activities and false advertising. If rigorously applied, they may change the housing situation in Shanghai.
Source: Shanghai Daily
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