Shenzhen brings in new controls

PUBLISHED : Friday, 23 June, 2006, 12:00am
UPDATED : Friday, 23 June, 2006, 12:00am

Bylaws have been announced by the Shenzhen municipal government in line with the central authorities' new property market regulations, aimed at bringing surging prices in the sector under control.

Local authorities released the new bylaws on Wednesday, three weeks after the central government issued its new measures. The local rules introduce market-tightening measures, including higher minimum deposits, higher taxes and restrictions on large flats and lending.

They include a city-wide ban on building villas within the next three to five years, and a plan to use 10 per cent of the annual income from land auctions to build public rental flats.

Flats of less than 90 square metres must account for at least 70 per cent of the units built in each new property project.