Shanghai Property Cooling Measures Taking Effects
Apr 4th, 2016
By APMR News
Total property transacted area in Shanghai fell 60.44% in the first week after the property market cool measures taking place, average sale price drop 3.42% week on week, according to data released by the local property agency. In the meantime, cities surrounding the tier-1 cities, transactions jumped up more than 60% during the same week.
First week after the new measure announced, one China Vanke's project in Kunshan, a satellite city located next to Shanghai while geographically belonging to Suzhou, went sold out during the week.
Shanghai government announced on March 25th of so-called strictest property cooling down measures in history, the measures included restriciting real estates agencies providing extra loan structures to property buyers and increasing the down-payment level to 50% for normal second home purchases and 70% for second home purchase for investment purposes.
New measures, taking effective on the same day, also listed that non-local buyers need to have more than five years of social insurance payment history in the city before they can make any purchase. The social insurance payment history record requirement was two years before the new cool measures accouncement.
According to local agency property index, by March 31, among 15 tier-2 cities projected by the agency, total transaction area reached 18.25 million square meters, 160.6% increase from February and 96.4% more than March 2015.