[photopress:shanghaiwinter.jpg,full,alignright]Beijing has already issued its first batch of measures to help cool down the city’s real estate sector. Shanghai is now awaiting a similar package.
A source told China Daily News, ‘Shanghai Administration Bureau of Housing, Land and Resources (SABHLR) completed the first draft of its macro-control measures about six weeks ago. It was previously supposed to be issued soon after the National Day Holiday, but now it seems its publication will be postponed further.’
Shanghai’s measures are expected to cover house structure, foreign investment, land management and low-cost accommodation.
Shenzhen was the first city on the Chinese mainland to issue local cool-down measures based on the central government’s policies. Shenzhen took the lead in strictly enforcing the structural standard known as the 70/90 policy, which means that 90-square-metre houses account for 70 percent of residential property projects, but was criticized by some developers and experts in Shanghai for ‘blindly following the central government.’
CB Richard Ellis, a foreign property agent, has already conducted a research on macro-control policies adopted by cities such as Shenzhen, Dalian, Nanjing and Beijing, analyzing the impact of the policy’s enforcement on the property market in these cities.
There were worries that tough regulation will harm the market. The source said, ‘The break in the capital flow due to banks’ loan and mortgage controls has already happened in Shanghai. If the property policies in Shanghai are too harsh, this will further accelerate the pace of the reshuffle in the market.’
Property insiders generally believe that Shanghai will require 50 percent of residential property projects to be homes of less than 90 square meters within the city’s inner ring road.
Between the city’s inner and outer ring roads, the figure is expected to be 70 percent, while it believed it will be between 74 and 80 percent outside the outer ring road.
Source: China Daily News