Farayand Virtual World

* Shanghai adopts new restrictions to keep lid on real estate price

City sharpens effort to prevent bubble from bursting

Shanghai (Reuters) China's financial hub of Shanghai has slapped fresh restrictions on its red-hot property market.

The government has quickened efforts to douse Real estate speculation, State newspapers said yes tardy.

That was the city's second move in as many months to try to keep a lid on soaring housing prices. Beijing has urged local governments to maintain vigilance, 'fearful that a, bubble and its bursting could further burden a' bad I debt-laden banking sector. Horne-owners now have to payoff mortgages before transferring deeds to new buyers, the local housing _ bureau was cited by the' China Securities Journal as saying.

And the city has extended a waiting period between the sale and transfer of property to 28 days from seven now, seemingly to raise the cost of bridge loans, the paper reported.
China's richest city has taken the lead in combating an escalating investment bubble. In March it began levying a 5.5 per cent capital gains tax on the sale of real estate held for less than 12 months, becoming the country's first city to do so.
That month, the central bank allowed lenders to demand bigger down Payments and charge higher -mortgage rates in certain cities.

Buoyed by luxury property prices that, by developers' reckoning, have as much as doubled in the past year, real estate players from Singapore's Capital and Ltd to Hong Kong's Kerry Properties Ltd are building in Shanghai at a prolific rate. Average housing prices in Shanghai last year jumped to 6,385 Yuan (Dh2, 833.80) per square meter, up 14.6 per cent on 2003 and growing for the fourth consecutive year, said Jones Lang LaSalle.

Big demand

Real estate agents offer bargains at a property fair in Beijing. Shanghai, China's richest city, has taken the lead in acting against an escalating investment bubble.

(Source:Gulf News)