More China cities in bid to cool real estate market

More China cities in bid to cool real estate market

Authorities in Guangzhou and Shenzhen, two large cities in Guangdong province, announced detailed regulations on Sunday to further cool the real estate market amid expectations of rising property prices this year.

According to the regulations, Guangzhou, the provincial capital, will provide land for residential use of up to 5.95 square kilometers this year, up 1.47 sq km compared with the average during the past five years.

Those without hukou in the city are permitted to buy houses after they have continually paid tax or social security fees there for one year or longer two years before they buy a house.

"The measures are aimed at better cooling down the property market by providing more land for residential use," said Huang Wenbo, spokesman for the Guangzhou Land Resources and Housing Administrative Bureau.

Land for construction of small- and medium-sized dwellings will account for at least 70 per cent of the total for residential use, according to the regulations.

The regulations in Guangzhou did not mention detailed measures to limit property prices. But Huang said the city's rules are strictly in line with the central government's policies.

"We will strictly implement the 20-per cent tax on capital gains from property sales," he said.

In contrast, authorities in Shenzhen have planned to limit the price increase of new properties below the city's per capita disposable income target, which was set at 9 per cent by the local people's congress earlier this year.

However, authorities in Shenzhen did not explain how they will implement the 20-per cent tax on capital gains from property sales.

The southern special economic zone also planned to build some 40,000 units of affordable government-subsidized properties this year.

Before Guangzhou and Shenzhen's detailed rules, Beijing, Shanghai and Chongqing, along with Hefei in Anhui province and Xiamen in Fujian province, also announced on Saturday how they will implement the central government's regulatory plan set earlier in March.

In Beijing, single adults with the capital's hukou - household registration - are allowed to buy only one apartment, as opposed to two previously.

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