According to a report in the China Daily, officials in the country have announced plans to build a database which will track and share property ownership information amongst 40 major cities.
It will give information about properties and their ownership, as well as information about earlier sales of properties. The plan is that the database will reveal who is buying properties in several cities, and will enable the flow of money to be tracked from one city to another. This will help authorities monitor the housing market more closely, and should help reduce speculation.
At the moment there isn’t a clear picture of the housing market in China, as there hasn’t been a national housing census since 1985. Management of housing programs are only traceable online back to 2004, and records have often been kept in different departments giving an incomplete picture. It is hoped this new database will enable property prices to be cooled in the second and third tier cities as it is still a problem.
The government of Taizhou City recently announced new regulations on purchasing properties, as housing prices in the region has increased substantially over the past few years due to our money coming in from other cities that have already imposed purchasing limits. The new regulations stipulate that anyone planning to buy a house in the area has two apply for a properties check from the authorities, and in addition they must also have records of social insurance or personal income taxes paid in the city for at least 12 months out of the previous 24.
Second and third tier cities whose prices have increased are being advised by the Ministry of Housing and Urban-Rural Development to impose limits on purchases in the near future, and more than 20 cities have already decided to implement these measures, with more likely to follow suit.