Nov 11, 2011
Translated by Song Chunling

On Nov. 10, the city government of Zhongshan (中山) in Guangdong announced a new policy that will put limits on the price that can be paid on a free-standing, newly-constructed commercial housing unit. However the price restriction will only stay in place until the end of the year.

Zhongshan's decision to limit the price of residential housing to below 5,800 yuan per square meter, makes it the sixth city in Guangdong to announce specific price limits on housing. However the method of limiting restrictions to 52 days is rare.

Wang Haibin (王海滨), from World Union Real Estate (世联地产), said Zhongshan government's policy is simply a token gesture that is being introduced to cope with pressure from the central government to rein in housing prices.

Wang argued that the policy is an indication of the distance between the central and local governments in relation to introducing restrictions on the real estate sector. While local governments prefer to introduce price limits, the central government is in favor of purchase restrictions.

Links and Sources:
China Business News: 单价超5800将暂缓网签 中山楼市限价执行期仅52天
http://www.yicai.com/news/2011/11/1190494.html