(ECNS) - The local government in Haikou City, Hainan Province issued a new directive to further control the real estate industry and clamp down on speculative investment.
The new regulation bars companies from buying residences in the city and also limits those who acquired the city’s household registration after April 22, 2018 to owning only one home.
The Haikou government will also continue property price control measures. For example, the price of commercially developed housing cannot be changed within six months after its registration with authorities.
Centaline Property analyst Zhang Dawei said Haikou’s robust new policies will further prevent investors from buying homes under the name of companies.
Zhang also said other cities in the island province including Sanya may tighten property market controls. He expects the province of Hainan, which will develop into a free trade zone, will introduce more measures.
Data from Centaline Property shows Haikou’s home sales totaled 812,600 square meters from January to November 2018, a year-on-year decrease of 76.02 percent. After the strict property measures were introduced, Hainan’s real estate market began to slow last April.