Guangzhou announces new property curbs

November 20, 2013 Leave a comment

Guangzhou announces new property curbs

Xinhua

2013-11-19

The municipal government of Guangzhou, the capital of south China’s Guangdong province, spelled out new rules to cool down the property market on Monday, following moves by three other mega-cities. The government will increase down payments for second-home purchasers from the current level of no less than 60% of the property value, according to a government statement.Beijing, Shanghai and Shenzhen governments have recently rolled out detailed rules on regulating the market, raising down payments for those purchasing a second home to a minimum 70% of the property value.

Guangzhou has ruled that non-registered citizens have to pay tax continuously for three years before they can make a purchase and are limited to only one apartment.

Other rules include increasing land supply for residential houses by 20% in 2013 compared to the average for the past five years.

Also enhanced regulations over property price controls and building a long-term mechanism for the housing market are mentioned in the rules.

Guangdong witnessed property prices increases of 20.7% year-on-year in October, the fastest growth rate nationwide.

These rules will help to put a brake on skyrocketing property prices, but the goals may not be easy to achieve by the end of this year, industry insiders said.

Filed under Macro Trends

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