Categorized | International

Shanghai Eases Property Restrictions on Second Homes

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Housing developers in Shanghai are breathing a sigh of potential relief today, as the city has decided to ease property restrictions on second homes. The financial center of China has opted to act against the national policies set in place, and will now allow those who have lived in the city for at least three years to buy a second home.

 

The restrictions previously only allowed those that were born in the city to buy a second home. Many economists have questioned when the local Chinese governments would act on their own against the national restrictions, and it looks like it may finally be taking place. In addition to Shanghai’s policy change, the city of Wuhu has also reduced some property purchase restrictions in the recent past.

 

Despite these actions taken by local governments, the national government insists that it will not reduce nor remove any current property restrictions at the national level. Beijing has stated that it will not follow in the footsteps of Shanghai, and that they will maintain the property restrictions as they currently are.

 

Officials in Shanghai believe that they were left with no choice. Property values and sales have plummeted, and by loosening this particular restriction, they could experience a twenty to thirty percent increase in property sales.

 

There has been no indication of a backlash from the national government in China, though should one take place, it would not come as a surprise. Government officials believe that the restriction on the purchase of second homes is vital to prevent a real estate bubble.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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