Beijing to Deal With School-Related Home Price Increases

Caixin: Beijing Cracks Down on School-Area Housing Bubble
Beijing will tighten rules covering the partitioning of houses for sale from next month in its latest bid to close loopholes exploited by property owners selling residences near elite schools, amid mounting public uproar over skyrocketing home prices.

The approval of applications for real estate deeds by owners rebuilding or renovating single-story houses or seeking to change to multiple ownership will require site measurements recognized by the government from April 10, the Beijing Municipal Commission of Housing and Urban-Rural Development announced Monday.

Applications will be vetted strictly according to original floor plans, and corridors will be labeled clearly in official property registration documents to prevent them from being sold independently, according to the new rules.

The policy will discourage owners of residences that meet the enrollment criteria of schools dubbed as “xuequ fang”, or “school-district houses” from partitioning one property into small, unlivable cabins and selling them to different buyers, said Chen Zhi, secretary general of the Beijing Property Association.
Not very different from how it works in the United States, but demand is much higher due to population density.

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