Property prices in Shanghai soared by 21 percent in February 2016.
Chinese authorities introduced new property cooling measures in Shanghai and Shenzhen last week, after residential prices in those first-tier cities skyrocketed in February, reported Reuters and Shanghai Daily.
Latest data released by the National Bureau of Statistics shows that property prices in Shanghai soared by 21 percent last month, while prices in Shenzhen surged by 57 percent on an annual basis.
As a result, city officials decided to implement more stringent curbs.
In Shanghai, buyers of second homes must pay a down payment of at least 50 percent for normal homes, and a minimum of 70 percent for non-normal homes. Previously, they only had to pay a 40 percent deposit for both types of properties.
Normal homes within the Inner Ring Road are categorized as being not bigger than 140 sqm and priced under 4.5 million yuan (S$948,191). Those situated between the Inner and Outer Ring roads should not exceed 3.1 million yuan (S$653,151), while those beyond the Outer Ring Road should cost less than 2.3 million yuan (S$484,600).
All other residential properties are considered non-normal.
Moreover, non-local residents are only allowed to buy a home if their income tax and social security documents show that they have resided in Shanghai for more than five straight years. Previously, they were permitted to purchase a residential property if they had lived in the city for at least two years cumulatively over a three-year period.
In Shenzhen, first-time buyers who have taken out housing loans in the past two years, as well as second-timers, now need to pay a 40 percent down payment. Previously, both groups only had to fork out a 30 percent down payment.
Furthermore, the residency requirement for non-local buyers was raised to three consecutive years from one year previously.