The Chinese government will soon introduce tough new rules for the house market. It is expected that those new rules may drop home prices by as much as 30 percent by the end of this year in Beijing.
One of the new rules will be a restriction of maximum two houses for every family, where the amount of houses possessed by a family was unlimited before. Also, buyers of a new home will have to give all relevant information about their family before signing a contract. If a buyer gives false information or crosses the maximum of two homes, the contract will be invalid.
They are implementing these rules as a part of the central government's plan to curb housing speculation and soaring prices, because lately the prices in Beijing were going through the roof.
Analists speculate that the number of homes sold may fall down by 50 percent compared with the same period last year. One of the reasons would be that a lot of families have to stop buying apartments, as it has been common for those families to purchase several apartments. Also property developers may delay or even suspend projects in a move to reduce their risks.
In my opinion there are two sides to the story. On the one hand this is one of China's many restrictions that inhabitants have to live by, you can argue wether this is fair or not. Personally I think the Chinese should have more freedom to decide for themselves what they want, without the interference of the government. From this point of view I am against the new rules.
Analists speculate that the number of homes sold may fall down by 50 percent compared with the same period last year. One of the reasons would be that a lot of families have to stop buying apartments, as it has been common for those families to purchase several apartments. Also property developers may delay or even suspend projects in a move to reduce their risks.
In my opinion there are two sides to the story. On the one hand this is one of China's many restrictions that inhabitants have to live by, you can argue wether this is fair or not. Personally I think the Chinese should have more freedom to decide for themselves what they want, without the interference of the government. From this point of view I am against the new rules.
But on the other hand this is a measure that is necessary for the building sector, the people that can't afford a home because of the soaring prices, the future attractiveness of the region, etc. . And this might be more important than the liberty of the inhabitants of China, at least for now.
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