China’s attempt to cool its surging property market by issuing stricter measures has not succeeded as well as the government had hoped, prompting speculation that the industry will soon be hit by a new round of tighter measures.
Housing sales in major cities made a huge jump in August from July -- up 84% in Shenzhen, 56% in Guangzhou, 31% in Shanghai and 23% in Beijing. The August sales numbers are a 149% increase from the same month last year.
As a result of the rumor of new measures, real estate stocks have dropped by 1.5%.
Experts believe that the new measures could include restrictions on pre-sales of apartments and on the discounts banks can offer on mortgages, the compulsory lowering of home prices, and the introduction of a property tax.