[photopress:expensive.jpg,full,alignright]Macro-economic controls implemented to cool down the housing market, especially high-end properties, are beginning to take effect. The year-on-year growth of average prices of new units in 70 cities decreased from 5.8 percent in June to 5.5 percent in August. Not much but a start in the right direction. The findings were announced by the National Development and Reform Commission (NDRC), the country’s top economic planner, and the National Bureau of Statistics (NBS).
Coinciding with that report was a central bank survey of 20,000 customers in 50 cities showing ‘a continuous decline in enthusiasm in housing purchases,’ which contrasts with a rise in spending and savings.
In Shanghai, the frontrunner in the country’s luxury property market, average prices fell 5.4 percent in June, 3.5 percent in July, and 2.2 percent in August.
According to measures that went into effect on June 1, the minimum down payment for a new apartment larger than 90 square meters was raised from 20 percent to 30 percent of the unit price. A transaction tax is imposed on owners attempting to resell their units within five years of purchase up three years more from the previous regulation of two years. Further, housing developers are required to build more units smaller than 90 square meters.
Source: China Daily