Shenzhen authorities have introduced new curbs on property ownership aimed at clamping down on speculation in the overheated real-estate sector, Bloomberg reports, just as the central government is doubling down on its goal to rein in property prices.
Home owners in the southern Chinese city will have a three-year lock-in period for new properties, during which they cannot resell, according to a local government statement. Home purchases by corporations, a common means of circumventing restrictions, have also been suspended.
Despite a sustained attempt by governments to keep a lid on excessive house price growth, prices in Shenzhen rose 5.6% last month – the fastest rise in nearly two years.
The move closely followed a meeting of China’s Politburo on Tuesday where it was decided that stomping out home-price gains will be a key government priority. Taken with the measures in Shenzhen, the Politburo’s stance indicates that Beijing is still concerned that liquidity easing may lead to an inflation of the property market bubble.
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