Xi’an introduces property curbs on immigrants to cool property market
Jun 21, 2019 (China Knowledge) - Xi’an, capital of Shaanxi province in China has introduced new property curbs on immigrants in a bid to cool its overheated property market.
Under the new rules, new immigrants to the city are banned from buying primary or secondary homes within 12 months of acquiring a local hukou and non-local hukou holders are now required to provide 5 years of tax proof.
A hukou is a household registration document that allows Chinese citizens to access public services based on their birthplace.
Previously, new hukou holders could buy property immediately while non-local hukou holders were only required to produce 2 years of tax proof. The new rules come just two days after the city recorded a 2% increase month-on-month for new home prices in May, the highest among 70 cities watched by the government.
This latest increase was also the sixth straight month that Xi’an had seen the highest price increase across mainland China with average prices surging by 24.4% over the past 12 months.
The city’s rapid gain in home prices was largely driven by a large population inflow after the city greatly lowered its bar to obtain hukous in order to attract more talent, even fast-tracking hukou approvals for certain categories of people whose services were in high demand.
With this, Xi’an joins in several other cities such as Suzhou, Nanning and Dongguan to have taken steps to cool surging property and land prices in the past month.
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