Quoting from AFP: BEIJING — China is to expand its limits on property purchases to second and third-tier cities, a report aid Sunday, as it steps up efforts to cool its real estate market.
Authorities have drawn up a list of cities that will have to implement the limits, the Chongqing Evening News quoted an unnamed high-level official at the Ministry of Housing and Urban-Rural Development as saying.
Qingdao and Jinan in the nation’s east are among cities set to put the rules into effect, as reported by AFP.
This is to extend the controls to cities outside the immediate “danger zone” or popular cities. Despite all these cooling measures, the inflationary pressures on property prices continue unabated. To the extent that many observers are concerned that should this continue, it will surely affect
What this means to us:
The impact on property investors of China properties is immense. The government is bent on stronger cooling measures, but it seems that despite their efforts the earlier measures have yet to have any effect on the burgeoning property market. Concerns that the investments will flow out of the hot zones into 2nd and 3rd tier cities, it is wise that they have also capped regulations on those cities as well, and probably not a moment too soon.