China’s Hubei busts illegal house builders, agents
China’s central Hubei province has busted 25 real estate companies and property agents for illegal pre-sales, fake marketing and dodgy deals amid a clear-up of “chaos” in the housing market, reported by media.
The province’s housing department listed the offending firms, which included state-owned house builders and intermediaries, for “severely disrupting market order, and creating a negative influence on society”. China is looking to clean up its sizzling property market that has boomed since early 2016, trying to rein in buying frenzies in big cities even as they have spilled over to less-regulated smaller urban centers.
Hubei authorities are currently driving a six-month property market clear-up campaign, focused on cutting down speculative behavior in the market, illegal property development and shady property agents.
Scrapping the system would be a signal of Beijing’s intent to tighten developer financing amid a crackdown on risk.