Potential homebuyers read advertisements at a property expo in Beijing in April. (Photo/China Daily)
Some couples in the capital have also opted to divorce before selling to avoid the tax.
In Shanghai, civil affairs offices have been overwhelmed by couples who want to split up due to concerns over changes to the rules. Their anxiety was compounded on Aug 24 with a rumor that the city was to block divorcees from buying property with a 30 percent down payment within a year of their breakup.
The strategy is to get divorced in the morning, buy a property as a single person (with a down payment of just 30 percent of the full price if it's their first home) in the afternoon, and remarry the next day.
It's a method often used by couples who want a new house but don't want to meet the higher down payment requirement for a second home, which is at least 50 percent.
On Aug 25, the Shanghai housing authority took to social media to dismiss the rumor. Yet that did not prevent more than 130 couples applying for a divorce that day at just one of the city's civil affairs offices, double the daily average, China Economy Weekly reported.
The authority dismissed similar rumors twice in a week in early September, saying that policymakers were not considering changing the polices regarding property purchases.
By Thursday, five social media accounts had been closed permanently for spreading the rumors, with 13 more suspended for about a month. The next day, seven real estate agents were detained on allegations of starting rumors to boost their business.
"People would rather believe the rumor than risk becoming ineligible to buy a home with the current down payment requirement if a limit is placed on property purchases," said Ma Junjie, an agent for Homelink in Shanghai. "It's indeed herd mentality, but for some, to be one of the herd is better than being left behind."
