China goes back to rationing as authorities in Wuhan introduce ‘housing ticket’ to cool surging property prices
- Only applicants who have been issued a ‘home ticket’ can register to buy property and that too in only one residential project
- While average homes prices in China declined 8 per cent in the first half, they surged 4.1 per cent in Wuhan
In the latest bid, the government has borrowed a page from its old playbook of ration coupons, a strategy that was used during the country’s planned economy era, to rein in the property market.
The Wuhan Housing Security and Management Bureau said that any investor who tries to cheat or circumvent the ticketing system would be blacklisted and banned from buying a home for one year. The proposal is currently under public consultation until Friday.
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“The procedures to scrutinise home seekers’ qualifications have been rolled out in many cities, but a ‘home ticket’ system has been adopted for the first time,” said Yan Yuejin, director of Shanghai-based E-house China Research and Development Institute. “The ticket is another way to further screen out property speculators and stabilise people’s expectation on home prices.”
The Wuhan authorities’ move to implement a ticket-qualification system is reminiscent of the food ration coupons known as liangpiao in Chinese. The coupons were issued by the government during the planned economy era to make sure every household got some supplies when food and other commodities were scarce.