Hainan province announces policy changes aimed at cooling the property market.

According to the province’s 13th Five-Year-Plan, more than 80 million tourists are expected to visit Hainan annually by 2020.

Many domestic tourists are repeat visitors, a large number of which purchase vacation homes on the island. In recent months however the provincial government has begun clamping down on real estate investment from out-of-province buyers.

In April, Hainan banned buyers from getting mortgages for third homes, and also banned non-resident from buying second newly built homes on the island.

With the eight day national holiday (Golden week) about to begin, Hainan province announced two policy changes aimed at cooling the property market.

On Friday evening authorities announced that they will stop issuing construction permits for certain types of commercial residential projects.

This restriction applies to hotel-style condominiums, but housing for low-income families or owner-occupied commercial properties are not affected.

The Hainan government also announced a “permanent end” to new property developments targeting non-Hainan residents in the city of Wuzhishan, and the counties of Baoting, Qiongzhong and Baisha.

“Only subsidized housing and improvement-making commercial developments aimed at solving local residents’ housing needs will be allowed” in these areas, the government statement said.

Source: www.caixinglobal.com