Dalian, one
of the most developed cities in China’s north, is going to unprecedented
lengths to keep a lid on home prices.
According to
an official news agency report Wednesday that quoted a local-government
statement, all home builders in the city must now seek sales approval by
inputting an apartment’s proposed price into a centralized computer system.
Prices must be lower than the bottom price for similar dwellings sold in May
and June, and any higher prices won’t be be entertained.
There’s also
a limit on what’s too low -- selling an apartment for more than 5% cheaper is
prohibited as well. Dalian’s government will even bring in a third-party
appraisal firm to help developers do their math, and those that don’t follow
the system will be banned from the city.
Residential
home prices in Dalian have gained 6.1% this year, official data show.
It’s yet
another example of the sometimes extreme lengths authorities in China will go
to to control the nation’s real-estate sector. Other restrictions have included
banning anyone not born in a particular city from purchasing property there, or
barring anyone who’s single or even just getting a divorce.
The measures come as China’s top
leadership vowed
Tuesday that property loosening will never feature in any economy-rescue
package, reiterating a stance that housing is for “habitation, not for
speculation.”
Source: Bloomberg