Business

Shanghai restricts home purchases as prices soar

shanghai houses
Image caption Homes across Shanghai are being demolished to make way for new high-rise blocks

Shanghai authorities have imposed limits on home buying in an attempt to cool the city's property market.

Families in Shanghai will temporarily be allowed to buy only one more home, and banks must restrict mortgages.

It follows moves by the central government to curb property speculation on the back of big price rises.

Earlier this week, authorities in Shenzhen announced that anyone owning two houses or more would be stopped from buying further properties.

The Shanghai regional government said it would limit the amount of mortgages banks can issue, and that it is preparing to trial the launch of a real estate tax.

The authority said it had ordered banks to suspend loans for third-home buyers and that it will further regulate the operations of property developers.

No details were given about how long the buying rule would be in force.

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