Latest News:  
Beijing   Cloudy/Overcast    32 / 22 ℃  City Forecast

Home>>China Society

Shanghai tightens restrictions on home purchase


10:29, June 24, 2012

BEIJING, June 22 (Xinhua) -- Authorities in east China's Shanghai city have shut another door for house buyers seeking loopholes in local restrictions on home purchase in a move to tighten controls on the property sector, a Chinese newspaper reported Friday.

People without registered permanent residence permits in Shanghai have been forbidden to buy houses in the city even if they pay social insurance premiums at the required amount but not over the required period of time, the Beijing-based China Securities Journal reported.

For non-registered permanent residents to qualify as a legitimate home buyer in Shanghai, one needs to provide certification of paying individual income taxes or social insurance premiums there for an aggregated period of at least one year within the past two years.

However, some buyers who did not pay insurance premiums for that long simply supplemented the required amount to the already paid premiums and were able to make purchases, creating a grey area in the regulation, the report said.

Such acts were no longer allowed from June 15, the newspaper said, quoting sources from local property transaction centers and the Shanghai housing regulatory bureau.

The move followed a ban last July on similar circumvention activities on the individual income tax requirement and came amid government efforts to cool speculation on a relax of property controls.

Since 2010, China has implemented a raft of measures to rein in runaway house prices, including restrictions on home buyers, higher down-payments, property tax trials and the construction of low-income housing.

As China's economy slowed, there have been growing concerns that, if China's housing prices fall too much and too soon, it may hurt the country's overall growth.

However, the Ministry of Housing and Urban-rural Development reiterated earlier this week that the country will steadfastly continue with its property market regulation policies.

The country's central bank and the China Banking Regulatory Commission both clarified last week that they had made no changes on the home lending policies and risk-weighting for individual mortgage loans.

The National Development and Reform Commission (NDRC) said last week media reports were purely fabricated quoting NDRC sources as saying loosening the grip on the property sector was "a second card to save the market."

New home prices in several major Chinese cities continued to fall in May, but more cities saw slight price increases from the previous month, official data showed.

In May, 55 of a statistical pool of 70 major cities saw year-on-year drops in new home prices, expanding from 46 in April this year. However, six cities, up from three in April, saw prices rise month-on-month, according to official statistics.


Leave your comment0 comments

  1. Name


Selections for you

  1. Mengshan Mountain Giant Buddha - the second largest in the world

  2. Division in long-range transportation drill

  3. Life in drug rehabilitation center in Hebei

  4. Ecosystem of Erhai Lake improved

Most Popular


  1. Chinese banks must go global
  2. Trade is tool to fix global economy
  3. Skyscraper frenzy brings loan risks to new heights
  4. China to 'maintain 8% growth for over 20 years'
  5. Larger labor force not a panacea for pension woes
  6. "China Containment theory" has no market
  7. Benefits of direct yen-yuan may be few, far between
  8. Keeping up appearances online proves tough job
  9. Why China's export growth rebounds robustly
  10. Don’t hate the trader, hate the securities game

What's happening in China

Life in drug rehabilitation center in Hebei

  1. China refutes IPR enforcement deteriorating
  2. China encourages private energy investment
  3. China in uphill battle against poverty
  4. Human error blamed for bridge collapse
  5. Harsher punishments on traffic violations

China Features

  1. Left-behind kids have 'dream house'
  2. China's Olympic history: The road to success
  3. Eight systems of Shenzhou-9 manned spacecraft
  4. The thousand-year-old Tibetan paper
  5. Beijing Summit features five new aspects

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai