Residents of the richest cities in China have set a limit on the purchase of apartments





13.10.2010 20:28
In the largest Chinese city of Shanghai, China banned the purchase third apartment for a family in addition to two already existing.

Said prohibition applies to both primary and secondary residences, reports Reuters.

According to the Shanghai Administration stresses that this is a temporary measure, but the timing of its action are not established. In all likelihood, it will be repealed as soon as the value of residential real estate will decline.

"A similar restriction was introduced in other major Chinese cities - particularly in Beijing and Shenzhen. However, a significant decrease in prices it has not yet led" - stated in the material.

In addition, Shanghai is expected to introduce a tax on land, which will be imposed on developers in the event that prices in the construction sites exceed last year`s level.

At the same time, analysts say Citigroup, the new tax could become a "two-edged sword: on the one hand, it encourages developers to cut prices, on the other - in a lack of funding, they can reduce their activity. In the latter case it would lead to a shortage of supply and, consequently, further price increases.

Recall that one of the key ways of regulating the market, announced by Chinese authorities, is a tax on home ownership. It is expected that its rate will be 0.8%, and the first city where it should enter, will Wuhan, Beijing and Shanghai.

Currently, prices for Chinese housing, despite the stabilization remain high. According to one recent survey, over 80% of the 46 thousand respondents said that the Chinese authorities have not fulfilled their promise to reduce housing prices. For 75% of the Chinese concept of "affordable housing" means the cost per square meter does not exceed 8 thousand yuan (U.S. $ 1,2 million). And more than half would prefer to buy housing at a price no more than 4 thousand yuan per square meter. m. In this case, in Shanghai the average cost per square meter in September over 20 thousand yuan - almost $ 3 thousand

As previously reported, the authorities in Shanghai - the richest city of China - are going to present taxes on commercial real estate rasprostanit and residential buildings.
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Content tags: Overseas property
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