New property regulation will improve stability
ANBOUND
On March 26, Beijing announced the limit for the purchase of properties originally intended for commercial purpose but are sold as residential properties; this has further accelerated property market regulation and control policies. The new regulation objective can be summarized as affordable for the needy, cautious for those who wish to change properties and not cost-effective for those who wish to speculate. The current regulation will improve the supply and stability of properties in first tier cities like Beijing and other surrounding smaller cities. Anbound researchers believe that from Germany, Singapore and other countries' experience, increasing the supply of public housing and real estate tax regulation is a more common and effective means, but these measures will face competition from long-term interest, therefore currently property bubble can only be curbed with administrative means.