Price rises spur new curbs in Zhengzhou
While further tightening by central government is unlikely, Henan capital introduces tougher measures after a 2.38pc gain in home prices
The capital of Henan province said it would bar people without residency permits who have lived in the city for less than three years from buying second homes. It would also prohibit residents under the age of 20 from buying any property, the city's Housing Bureau said in a statement on its Sina Weibo microblog.
The measures come after the city saw a 2.38 per cent month-on-month gain in new home prices to 8,811 yuan (HK$11,070) per square metre in August.
New home prices on the mainland rose the most last month since December on growing expectation that the central government was unlikely to further tighten the property market, according to real estate website SouFun.
In SouFun's survey of 100 cities, average prices jumped 8.61 per cent year on year to 10,442 yuan per square metre in August. On a month-on-month basis, they grew on average 0.92 per cent.
"Prices of new homes will continue to increase as September and October are traditionally the peak seasons in the real estate market," said Thomas Lam, head of research and consultancy, Greater China, at property consultancy Knight Frank.
He predicted prices in major cities would jump 10 per cent this year as the central authorities were unlikely to introduce any more measures to cool the market. "Given the slow economy, the central government will tolerate the price growth rather than introducing harsher policies," he said.