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Wednesday, August 01, 2018, 22:17
Shenzhen announces tighter property market rules
By Bloomberg &
Wednesday, August 01, 2018, 22:17 By Bloomberg &

The Pingan International Financial Center and other buildings are seen in Shenzhen, Guangdong province. (VCG)

Shenzhen announced its latest round of restrictions on Tuesday to curb housing market speculation, following recent moves by other major cities in China.

Homeowners in Shenzhen will  have to hold a property for at least three years before being allowed to sell, according to the statement

Local authorities have suspended home purchases by corporations and organizations, according to a statement released by the city's government late Tuesday.

Commercial apartments built on all kinds of new lands can only be rented but not sold, according to the statement. An enterprise's overall holding period of a business apartment should be consistent with the time limit of the land use right, with the single lease term no longer than 10 years.

ALSO READ: China: No relaxation of property curbs

In addition, from Tuesday, business apartments newly purchased by individuals, enterprises, institutions or social organizations are prohibited from transferring the unit within five years from the date of obtaining the property right certificate.

Homeowners in Shenzhen will also have to hold a property for at least three years before being allowed to sell, according to the statement.

A downpayment of no less than 70 percent will be required for individual buyers who apply for loans within two years from filing for divorce, according to the latest policy.

READ MORE: HK should take a leaf from Shenzhen’s housing reform book

Zhang Dawei, chief analyst with real estate agency Centaline Property, told Securities Daily that most enterprises that purchase residential housings are speculators.

"The regulation on banning enterprises and institutions from purchasing commodity housing may be adopted by more cities, as it is an effective way to ease the tension between market supply and demand," Zhang said.

"The launch of this policy is timely and necessary," Wang told 21st Century Business Herald.

He said banning enterprises from purchasing commodity housing can plug the loopholes and stop individuals from bypassing the purchase limit.

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