Back in June 2003, the
By April 2004, Four Major Commercial banks and some of the other lending banks had modified their lending criteria and policy, some of the results were:
- A decrease in the loan amounts for the purchase of luxury properties and investment properties as well as shortening the repayment term
- Encouraging the increasing number of middle income families to purchase owner occupied properties
- Carefully evaluate the purchase of luxury properties, Economical Appliance Properties and commercial properties
The Shanghai Government also released corresponding measures to curb the speculation in the property market.
April 26th, 2004, the Shanghai government announced a new policy to ban the transaction of unfinished apartments at secondary market. The measure mainly targets speculators, who seek to make big, quick profits.
- In order to improve the market transparency and efficiency, an online housing trading system was introduced. From
July 1st 2004, all projects on sale must be approved and have information such as the number of available apartments, sale price and locations, etc. registered with Municipal government’s system.
tightening measures mainly resorted to administrative formula, and aimed to
cool off the temporary overheating phenomenon in
Many would say that now in
2005 these policies have brought about a slowing of the rampant growth, and
because of the tightening of lending, have also seen some decreases in prices