Foshan targeted for housing heat?

The Ministry of Housing and Urban-Rural Development has issued warnings on four cities: Foshan, Suzhou, Dalian and Nanning, which have seen a sharp rise in their property prices in the past three months.

Earlier in April, the regulatory body already issued warnings on six cities with large fluctuations in house prices and land prices in the first quarter. The warning was issued at the time of a statement from the country’s top executive body, the Politburo, which reiterated that “houses are for living, not speculation.”

In the previous warning, the names of the cities were not revealed. Is the next step a crackdown?

This is not the first time Foshan has been singled out for national attention, and it is easy to see why. According to data by information provider E-house, in Q1 the average transaction price of new properties in Foshan rose 22% YoY. It is unclear exactly why Foshan has jumped so much, however. One reason may be that the city has recently adjusted requirements for its housing provident fund, which allows for bigger loans for larger-sized properties.

Read more (in Chinese).