New curbs on real estate in Hainan

Hainan has drawn up measures to clamp down on real estate speculation, the official Hainan Daily newspaper reported, in an effort to contain resurgent demand from home buyers and property speculators, as earlier cooling measures appeared to be having limited effect.

Hainan's new investment restrictions will prevent buyers from getting mortgages to buy third homes, and will also ban non-residents from buying second newly built homes in the province, the Hainan Daily said, citing a notice approved by the local government. Down payments for residents of Sanya, one of China's most popular cities for tourists, have been raised to 50 percent for a second home.

In the rest of the province, residents still paying back previous loans will also have to make a down payment of 50 percent for a second home.

The capital of China's Sichuan province said on Wednesday that newly-bought homes cannot be sold again for at least three years. China was also forced to crack down on real estate speculation in Hebei after announcing the launch of a new economic zone in the province.

Source: http://www.cnbc.com