Picture taken from new.gz.fang.com
China’s southeastern city of 佛山 Foshan is highly sought after and highly touted. The local government of 佛山 Foshan has put measures and control three times since October of 2017 to maintain the prices in the market prices of property. The controls apply to both residents and non-residents of the area but at different context.
The government has pointed the fingers at developers and property agents who act unethically to boost the prices of the properties. To combat this issue the local government introduced some controls to limit the purchase of property and thus, maintaining a healthy competition in the market.
The local government has introduced a rule of only local buyers who are paying taxes can purchase one pre-owned home. Non- local buyers must have proof that they had paid 1-year worth of taxes if they wish to buy a home. Therefore, restricting foreign buyers from purchasing homes from the market. Foreign buyers also include Hong Kong and Macau residents and are limited to buying one residential property for self-occupation.
Local residents of 佛山 Foshan can own up to two homes. After reviews by the local government practice fairness to the locals.
According to Anjuke data, before the introduction of polices, average transaction prices were approximately 15,346 yuan per square meter. Foshan Centaline Property Agency stated that if no controls and policies were in placed, the property prices would easily hit 24,000 yuan per square meter.
After a strenuous battle in policy tightening, sales of new homes fell by almost close to 50%.