Jun
14
As China Acts to Cool Property Frenzy, Volatility Spurs New Risk
By-
Tighter home rules contributed to slower sales growth in May
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Rules see sellers in a lurch, buyers resort to fake divorces
China’s use of administrative measures to control property prices can have painful repercussions for its swelling ranks of homeowners. Just ask Shanghai resident Yi Miaowen.
Yi had to cut the price of the apartment he was selling by at least 8 percent after local authorities in March restricted purchases by non-residents, causing two prospective buyers to pull out.
“I needed the money ready within two months to pay for a larger apartment I just bought,” said the 42-year-old engineer, who sold his apartment for 5.31 million yuan ($808,502). “The buyers spotted my weakness and then asked for lower prices.”…
