China bans property sales in upcoming economic zone

Chinese policemen have apprehended seven individuals for property violations that occurred within Hebei’s Xiongan New Area, which is set...

The Chinese government has uncovered 765 cases of property violations in relation to the 100 sq km special economic zone.

Chinese policemen have apprehended seven individuals for property violations that occurred within Hebei’s Xiongan New Area, which is set to become the nation’s newest special economic zone, revealed Reuters, citing a report published by China Daily on Thursday (6 April).

While it did not divulge details of the offenses, a government committee created to develop the 100 sq km special economic zone revealed that it has closed 71 offices of real estate agencies and uncovered 765 cases of property violations.

After news broke last Saturday that the authorities plan to establish a special area in northern Hebei province like the Shenzhen Special Economic Zone, property hunters have entered the area, leading to spiralling real estate prices.

In fact, average prices of apartments in the province have nearly doubled. Moreover, hotels are full and locals face traffic congestion as out-of-towners from Beijing and other cities flock to Xiongan New Area, which is located 100km southwest of the nation’s capital, reported Global Times.

As such, the authorities have prohibited property sales in counties where the zone will be built, frustrating potential investors and forcing estate agents out of work.

Zhao Kezhi, the Communist Party leader of Hebei, said they will impose “the most stringent control” on the real estate market, and swiftly penalise illegal activity to serve as a warning to would-be speculators.

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg