It is reported that China Ministry of Housing and Urban-Rural Development put forward five criteria for local government to sift house buying restricted cities which include subordinate cities with high rise of house price index and house prices in June comparing to the end of last year presenting a high YoY growth rate of housing transactions in H1 this year with hovering house prices where people complain fiercely of local housing policies and suburbs near hot house purchasing cities.

It was estimated that the house prices in 39 cities among the total 70 with newly built commercial residential buildings rose by 4.23%YoY on average in Jun and the growth rate of the other 31 out of restrictions was up by 4.66% while that of first tier cities like Beijing, Shanghai, Guangzhou and Shenzhen only up 3.85%.

Industrial participants believed that the restriction was still an effective way to control house prices and if it took effect by the end of August, the housing market would surely be curbed in September and October without possible rebound normally.

(Sourced from MySteel.net)
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