April 12, 2017 / 10:44 AM / 3 years ago

China's Chengdu bars buyers from reselling homes for 3 years

BEIJING, April 12 (Reuters) - The capital of China’s Sichuan province on Wednesday joined more than 10 other cities in seeking to cool a sizzling property market by imposing a years-long minimum time before a buyer can resell a home.

Chengdu’s housing authority said in a notice on its website that effective on Thursday, newly-bought homes cannot be sold again for at least three years.

This year, a growing number of Chinese cities have been imposing a minimum ownership period of at least two years. These and other measures suggest intensified government efforts to cool the red-hot property market.

Chengdu authorities have also urged banks in the southwestern Chinese city to strengthen checks on home-buyers’ proof of income to contain credit risks by strictly fulfilling a requirement that the ratio of monthly mortgage repayments to income must not exceed 50 percent.

Wednesday’s announcements mark the second time in a month that Chengdu has unveiled property market curbs. In late March, it tightened requirements on income tax and social security records that non-residents making purchases have to produce.

Also on Wednesday, a small satellite city near Beijing, named Chengde, announced restrictions similar to what Chengdu imposed the same day. Chengde also slapped purchase limits for non-residents and hiked the downpayment ratio for first- and second-home buyers.

China has intensified a crackdown on property speculators this year by rolling out much harsher measures in big cities, while extending curbs to nearby satellite towns in an effort to contain resurgent demand from frenzied buyers. (Reporting by Yawen Chen and Nicholas Heath; Editing by Richard Borsuk)

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