Major cities in China have introduced yet another round of property-buying restrictions in a bid to calm the rapidly growing housing market.
The Chinese government has vowed try to “contain excessive home price rises in hot markets” – thereby keeping homes as affordable as possible for as long as possible for local residents.
Beijing, as well as the four provincial capitals of Zhengzhou, Shijiazhuang Changsha and Guangzhou, has introduced cooling methods which include restrictions on purchases of both second and third homes, as well as increased deposit requirements. Similar moves are expected to be rolled out in other Chinese cities shortly.
The news came as property prices in China picked up speed in February, after slowing in the previous four months. Sales have also increased dramatically, suggesting that the effect of previous property cooling steps introduced by many Chinese cities may have been short-lived.
In total, seven Chinese cities increased their property investment restrictions this month over the course of 19 days.
The announcement had a negative effect on the Chinese stock market however, with stocks dipping on Monday. China’s blue-chip CSI300 index fell around 0.4%, while the Shanghai Composite Index slipped about 0.2%. An index tracking the property sector also fell nearly 2% as a direct result of the new restrictions.