Beijing might impose a levy on developers holding idle residential plots in a move to curb speculation and cool property prices, sources said.
The potential new measure by the Ministry of Land and Resources was aimed at discouraging developers that kept sites undeveloped in the hope that values would rise, they said.
The levy, if put into place, is in line with Beijing's determination to rein in the property market. But property analysts said its effect might be limited.
On Tuesday, the central bank and the China Banking Regulatory Commission adopted a narrow definition on a second flat after they had raised the required down-payment for a second property to 40 per cent from 30 per cent. The authorities had also ordered interest rates for such mortgages be 1.1 times the regular rate.
Under the narrow definition, the 'household' will form the basic unit when lenders decide whether the new purchase is a second property.
The September announcement on the raised deposits and higher rates reduced property transactions but failed to bring lower selling prices.
Residential prices in 70 mainland cities last month jumped 10.5 per cent from a year earlier, according to Cao Changqing, director of pricing at the National Development and Reform Commission. The rise, which followed a 9.5 per cent gain in October, was the biggest increase since August 2005.
