The central government is setting up a national database on individual property ownership, raising hopes that curbs on homebuying will be removed, allowing transaction volumes to rebound.
The database, covering 40 key cities, will come on stream by June and allow the government to monitor and control speculation more effectively. Provinces have similar databases of their own, but as they are not centrally linked, big speculators can get away with buying multiple properties in different provinces.
The minister of housing and urban township construction, Jiang Weixin, said the system would enhance transparency in property transactions. 'This is an important step towards strengthening and improving real-estate regulation.'
Jiang had earlier said the home purchase limits now in place were the last resort to curb runaway property prices and would be phased out after the national database on individual property ownership was established.
Forty-six cities, including Beijing, Shanghai and Guangzhou, now limit buyers to two flats.
Analysts were upbeat at news that the database would be set up by June, saying it would eliminate the need for purchase restrictions and help raise transaction volumes.
'This is good news, as the database will better track and check speculative demand,' said Lee Wee Liat, regional head of property research at Samsung Securities (Asia).