Cross-posted from Investing in Chinese Stocks.
Beijing is trying a new strategy for capping home prices: mandating them. Four plots of land up for sale in Beijing have been amended to include limits on home prices, via iFeng: 北京四宗地限制未来房价 房价将不超6万元:
October 28 afternoon, the City Planning and Land Committee to the end of September listed four blocks release second supplementary announcement, commodity housing sales price Haidian District Yongfeng three plots no more than 53,400 yuan / square meter, the highest price no more than 56,100 yuan / square meter, the average selling price Daxing Huangcun Lot no more than 55,800 yuan / square meter, the highest price is not more than 58,500 yuan / square meter.
Given all the other regulations put in place over the past month, this additional one will probably work. By itself it will only create more affordable housing, since developers will have no incentive to increase building costs. Assuming they can’t find a workaround.
Another more important regulation: buyers of homes on these plots will not be able to sell for 5 years. The aim is to force investors away from speculation and towards renting.
Meanwhile, the Ministry of Housing has taken the lead in ending the illegal flow of Internet finance into the housing market, via iFeng: 住建部牵头 整顿互联网金融资金违规入楼市
The above already has this going to work for the basic characterization, is to ‘straighten out’.” October 26 morning, a local housing and urban construction system insider told the “China Business” reporter, the Ministry of Housing We are taking the lead in preparing for Internet banking, P2P illegal funds into the real estate market special rectification work.
The work will be in conjunction with the Department of Housing and the People’s Bank, China Banking Regulatory Commission, local financial office, the Ministry and other functions, to carry out the regulatory authorities. Department of Housing recently been in housing and urban construction within the system, in many ways, this information has been communicated, and related work arrangements.
Aside from this coordinated effort led by the MoH, various ministries and departments will continue carrying out other credit tightening measures.
