5,105 properties were sold yesterday in Hangzhou
For property developers in the eastern Chinese city of Hangzhou, which recently hosted the G20 leaders' meeting, Sunday was one for the record books.
Some 5,105 properties were sold, according to local newspaper Qianjiang Evening News, with more than 60 per cent of them newly built.
The rush to buy was prompted by the introduction of restrictions on Monday which prevent people born outside Hangzhou from buying more than one property. The newspaper said developers dispatched sales agents to clients in Shanghai over the weekend to sign deals and collect deposits.
Hangzhou is the latest in a series of Chinese cities to introduce property curbs in a bid to deter speculators and cool the market, which has reported rapid price increases in recent months.
However, the new restrictions are not yet having an impact.
Average new home prices in 70 major cities rose 9.2 per cent in August from a year ago, a faster pace than July's 7.9 per cent increase, according to Reuters calculations based on data released by the National Bureau of Statistics on Monday. Month-on-month prices rose in 64 of the 70 cities tracked by the government, up from 51 cities in July. They fell in just four cities, compared with 16 a month earlier.
In Hangzhou, new home prices rose 22 per cent, while in Xiamen and Nanjing, which have also introduced restrictions, they rose 36.7 per cent and 43.8 per cent respectively.
Late last month, rumours of new down-payment and sales tax requirements for married couples in Shanghai prompted a spike in the number of those seeking a divorce.
Shanghai police subsequently arrested seven property agents for spreading rumours about the mooted changes, accusing them of releasing the false information to drum up business.
China's leaders highlighted the risk of asset bubbles at a meeting in July. In the first half of this year, home mortgages made up more than half of all new loans by China's big banks.
Strong mortgage lending continued into August, in line with robust property sales, as new household medium- and long-term loans reached 529 billion yuan, compared with 286 billion yuan a year ago.
"The strong mortgage lending growth coupled with continued rapid increase in housing prices in a few cities may worry policy makers and lead them to ponder possible policy measures to contain potential property risks," said UBS economists in a note to clients. "However, the weakness in the general economy means that any notable nation-wide credit tightening to cool property activities will be unlikely."
Read more: http://www.afr.com/news/world/china-house-sales-surge-as-buyers-rush-to-beat-curbs-20160919-grjkqi#ixzz4KiDdW5XF
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