Following Beijing’s lead, Shanghai and Guangzhou both announced new restrictions on property purchases, Bloomberg reported, citing state media. The two cities will ban local residents who already have two or more homes from buying more property, and non-locals from making additional purchases. Shanghai’s plan includes a provision preventing non-local families from buying property unless they paid tax for at least a year in the municipality. Both Nanjing and Harbin plan similar moves, with more cities likely to follow. These attempts to prevent a housing bubble could see China’s property prices decline by upwards of 5% nationwide this year, with decreases of more than 10% possible in first-tier cities, said Shen Jianguang, Hong Kong-based chief economist at Mizuho Securities Asia.
Categories