China's property sales continue to boom despite purchase limits
Photo: Sogou
On June 4, Yichang City in Central China's Hubei Province released a statement saying it would expand the supply of residential housing and ban conducting transactions at night.
A day later, to fight against speculators, Tianjin Municipality in North China rolled out a series of new real estate purchase policies, which said those who violate purchase limitation rules would be severely punished.
Even so, the phenomenon such as people lining up to snap up properties and buyers submitting house-purchase verification materials at midnight can often be seen in scores of cities.
"People's craze for properties re-emerged after the failure of the fifth round of curbs which was launched in March," said Wang Yeqiang, an expert at the Chinese Academy of Social Sciences (CASS).
"Their desire to buy houses has increased amid the skyrocketing prices," he added.
Wang noted that local governments' price-cap policy and the recent introduction of lottery system are another two causes of the heating of the property market.
"Price-cap policy can maintain stable housing price in the short term. But as time goes by, speculation could emerge," he said.
"It is very likely that people would rush to purchase the houses with price caps even if they already have a residence."
"Meanwhile, to increase the chances of winning the lottery, some people would mobilize the whole family to try every means to increase their participation. They just treat buying new houses as an investment," he added.
"The move could cause anxiety among young people by creating an illusion that they might not be able to buy new houses amid the buying frenzy."
Wang also referred to the loose residence permit policy in some so-called new first-tier cities.
"Young people's inflow could increase demand for housing and further result in higher prices," he said.

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