China cracks down on fake divorces that let people buy more properties
NEW DELHI: A resurgence in real estate prices in Shanghai and Shenzhen has prompted authorities to rein in speculation, in line with the Chinese go nment’s resolve to keep the property market in check.
Shanghai officials unveiled policies late on Thursday to cool the local market, including a measure designed to plug a loophole long exploited by buyers using fake divorces to become eligible to purchase more properties or obtain mortgages.
The city will also levy a tax on sales of houses purchased within five years, up from the previous two-year barrier.
This is “aimed at resolutely enforcing the decisions of the central committee of the Party” and “firmly upholding the policy stance that ‘houses are for inhabiting, not for speculation’,” the Shanghai municipal go nment said in a statemen
With the new policy, Shanghai follows big cities including Shenzhen and Hangzhou to crack down on housing speculation via fake divorces since 2018, said Pan Hao, a property analyst at KE Holdings Inc.
As most Chinese cities limit home-buying demand by cap the number of properties a family can own, divorce becomes a way to bypass the restriction.
In Shanghai, local families are allowed to own two homes. Under the new rule, the number of homes owned by people who have been divorced for less than three years will be counted based on the total they had when they were still married.
“houses are for inhabiting, not for speculation”, an excellent principal to improve affordability.
yes, but if there aren't investors, where do renters go? imagine someone starting a career in a new city. will he/she buy or rent? it takes time to settle down in your career and that's when you buy a house/apt.
This real estate all over the globe may get a set back in near future. Jobs will be dependent on corona situation.
people commit suicide all the time ... what's new?
That Chinese are not part of humankind and have absolutely no right claim to be humanThey are the most unscrupulous and depraved UNTERMENSCHEN illegally occupying a sizable area of our planet.
But at least they don't have people dying of starvation. their govt. has made sure that every citizen has food on the table (except that most Chinese eat sitting on the floor, not on table - just a metaphor)
Over populated countries and that too which eat anything that moves, indeed damaging to the planet but please
An intelligent move in present circumstances The Govt. has to be a step ahead to meet such challenges of times.
Pradip Kumar Shome
But China has some ghost cities where there are no taker!
India also need to take measures in making housing more affordable. Even increasing housing will result in final big bubble burst, also make cities costly to live
Compare with govts in India. Escalate the prices further thru' GST, stamp duties, registration fees, ready reckoners etc. T
Is marriage compulsory in China?
To quell Greed, Laws are not enough! Regards. Prabhakar
However, with corona cases on rise, people will not be alive to buy properties.
It seems that the Chinese go nment is paying the price for partially opening the economy.
This may not be an ELECTED govt but certainly CARES for people.
Nothing new for barbaric people with limited intelligence.
Why there are more divorce in India now. Discuss that first.