Hainan Adds New Home Selling Restriction: No Price Increases for 6 Months

Many of China's newest home price regulations merely lower developer profit and increase consumer surplus. Selling below market-prices homes via lottery and now limiting price increases for six months.

Bulls and bears go back and forth on China's economy, but these price controls and their repeated failure reveal serious inefficiencies in the economy. One can take a bullish view of how much growth is possible without these extreme distortions, but must also understand there are vast amounts of malinvestment in the preceding years. At this point these articles are like drops in the ocean of the yuan revaluation (major depreciation) thesis.

iFeng: 全域限购后 海南再出狠招调控楼市!
Hainan: No increase in price of commercial housing within six months after filing

The Hainan Provincial Price Bureau and the Department of Housing and Urban-Rural Development of Hainan Province jointly issued the “Notice on Further Implementing the Record Management of the Sale Price of Commercial Housing” (hereinafter referred to as the “Notice”) on June 6 to require the registration of commodity housing prices after 6 No increase in filing prices may be made within the month; adjustments to the filing prices must be re-filed.

The "Notice" clarified that for real estate commercial housing projects that meet pre-sale (sales) conditions, real estate development companies should pre-sell the pre-sale permit (pre-sale registration form) for the pre-sale permit for commodity housing to the competent pricing department of the city or county where they are located. Sales price registration; commodity housing that has applied for pre-sale license (sales registration form) but has not applied for sales price record, and has signed a commodity house subscription book and sales contract before the implementation of the record price of commodity housing sales on May 1, 2017 Or, if it is signed on the Internet, no further price filing is required; after May 1, 2017, prices should be filed before sales.

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