Beijing City Limits Home Purchases After Government Curbs, CCTV Reports

Beijing will ban residents from buying more than two homes after the Chinese government extended property curbs to prevent a housing bubble, China Central Television reported.

Local residents will be limited to two homes and non-locals will be allowed to buy only one property, CCTV said. Non-Beijing residents also need to provide five years of tax documentation to buy residential properties, the state-owned broadcaster said.

China has been cracking down on the property market to ensure housing remains affordable, with cities including Shanghai, Qingdao and Jinan imposing local restrictions. The government last month raised the minimum down payment for second-home purchases and introduced taxes for homes in Shanghai and Chongqing, while the central bank raised interest rates last week for the third time since mid-October.

“The Beijing restriction probably is the harshest among all local curbs,” Du Jinsong, a Hong Kong-based property analyst for Credit Suisse Group AG, said in a phone interview. “Investors are worried that will hurt property demand.”

Qingdao will ban residents owning two homes from buying more property, the China National Radio reported last month. Residents from outside the eastern Chinese region with one home will not be allowed to make a second purchase, according to the report.

Home prices rose 6.4 percent in December from a year earlier, increasing for a 19th month, the country’s statistics bureau said Jan. 17. The government is due to report January’s property price figures on Feb. 18.

--Bonnie Cao. Editors: Linus Chua, Andreea Papuc

To contact Bloomberg News staff for this story: Bonnie Cao in Shanghai at +86-21-6104-3035 or bcao4@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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