2015-01-29

Beijing and Shanghai Reject Calls For Easing

Developers want Beijing and Shanghai to ease buying restrictions, but officials are holding the line. Only 5 cities still have buying restrictions: the four tier-one cities and Sanya.

Critics argue that if first-tier cities lifted restrictions, first-tier cities might suck the oxygen out of the market. Rapidly increasing prices in first-tier cities would draw developers and investors, while the third- and fourth-tier cities sink. In any event, first-tier cities do not want rapidly rising prices in the first place.

"From the perspective of land finance, the land market in first-tier cities has warmed, relaxing buying restrictions is useless. In addition, the third- and fourth-tier cities are different, there demand is weak, but first-tier cities' housing demand is still very strong. If buying restrictions are canceled, it could cause rapid increases in house prices in the short term." China Index Academy, executive vice president Huang Yu said.

An insider at the Shenzhen Urban Planning and Land Committee told reporters that behind the first-tier cities unwillingness to ease buying restrictions is not central government pressure, but all kinds of local government concerns.

iFeng: 北京上海楼市限购拒谢幕 开发商执着呼吁局部松绑

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