Ping Pong Policy: Bubble to Crash to Bubble

Only four years ago China was worried about overheating housing markets. Then it was worried about a crash. Now it's back to overheating.

China Daily: Nanjing further tightens control on property market
Nanjing, capital of East China's Jiangsu province, adopted new rules restricting home purchases in a bid to cool the red-hot housing market on Sunday, according to a report by Shanghai Securities Daily.

The rules, effective on Monday, symbolize a restart of restrictive policies that were scrapped two years ago.

...Nanjing adopted the most stringent regulations on the property market in February 19, 2011, restraining local residents from buying more than two houses and allowing non-local residents with one full-year social security and tax payment to buy only one house.

Home sales and prices plummeted following the initial adoption of the regulations, but picked up later as people found ways, such as fake divorces or forging social security certificates, to bypass the restraints. In mid-2014, housing prices fell again as banks tightened mortgage loans. The local government then removed regulations on September 22, 2014. Since then, the property market has warmed up and the frenzy has continued.
Early 2014 credit slows and mortgages tightened. Months later buying restrictions lifted as the government panics amid housing slowdown. Two years later the bubble is is back and so are the buying restrictions...
Caijing: 时隔两年 南京楼市重启限购措施

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