Never ones to sit on their hands in the face of a potential threat, the Chinese Government have taken action to quell a potential property bubble.
The 11 measures imposed will restrict foreign investors and speculators by increasing the “monitoring of capital flow and trans-boundary investment and financing activities so as to prevent credit from entering the real estate sector illegally and stop overseas speculative funds from jeapordizing China’s property market”. (the How China Deals with a Potential Property Bubble can be read here)
The government will also move to “guide reasonable housing consumption and curb speculative investments.” Earlier this month the government imposed a sales tax on homes sold within five years of purchase, increasing the time period from two years.
It is the huge increase in property prices in the majority of Chinese cities which has encouraged the Government to act. For instance, Shanghai saw average house prices jump a staggering 68% in 2009, and Beijing 66%.