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New Guidelines Published for Home Purchasing Restrictions in 2nd and 3rd Tier Cities

release date:2011/08/19 hits:548

On August 17th, the Ministry of Housing and Urban-Rural Development announced five guidelines for home purchasing, which seek to stabilise the rising housing prices. The guidelines are meant to help local governments evaluate which cities should have increased home-purchasing restrictions applied——if a city meets/exceeds any two of the five listed guidelines, it will be placed on this list.

According to some real estate organisations, following these five guidelines, there are already more than 30 cities that should be added to the list. This bold statement takes into account data released by the National Bureau of Statistics, which show that in Qinhuangdao, Ganzhou, Changde, Dandong, Yantai and 13 other second and third tier cities, that housing prices in June had risen more than 5% since last June. Also, analysing the commercial turnover of housing properties, Qinhuangdao, Harbin, Xuzhou, Jining, Yinchuan, Weifang, Beihai, Liuzhou and 17 other cities are the worst offenders: in the first half of this year, the rate of turnover rose 20%.

One other indicator shows that some people who live in first tier cities or provincial capitals that already have housing restrictions in place, will often purchase housing properties in the second and third tier cities nearby. Looking at the proportion of housing properties purchased in these cities by non-locals, Langfang, Baoding, Yangzhou, Huizhou, Xianghe, Yichang, Zhenjiang, Zhoushan and other 19 cities are particularly guilty.

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