China’s Guangzhou scraps controversial housing price limits

  • Guangzhou has quietly abandoned a controversial, seven-year-old policy limiting new housing prices, in a move to ease controls on the ailing property market.
  • Developers still need to file planned selling prices with authorities, but regulators no longer provide price guidance, according to the sources.
  • Since September 2016, Guangzhou has imposed price limits on new housing projects, barring properties from being sold for prices outside an official range.
  • The policy, designed to rein in a freewheeling industry, has drawn criticism for distorting the market.
  • During the housing market downturn, the price limits have been blamed for hindering developers’ self-rescue efforts to prop up sales by offering discounts.

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