Fake divorce, a path to riches in China’s hot real estate
China’s rising property prices this year have been inspiring by divorce cases measures, as frenzied buyers are seeking to act before further regulatory curbs are imposed. While the latest figures show easing in some of the hottest cities such as Beijing and Shanghai, the cost of new homes surged by the most in seven years in September.
On the whole, the real estate market “apparently cooled” in October following targeted measures rolled out in first-tier and some second-tier cities, China’s National Bureau of Statistics said in a statement. Local governments in at least 21 cities have been introducing property curbs, such as requiring larger down-payments and limiting purchases of multiple dwellings in a bid to cool prices.
The impact of the curbs may be short-lived as regulators have shown no signs of tightening on the monetary front, according to analysts from UBS Group AG and Bank of Communications Co.
“The curbs will show their effect in the initial two-to-three months, but in the longer term idle capital will still likely flow to property in the largest hubs as ‘safe-heaven’ assets,” said Xia Dan, a Shanghai-based analyst at Bank of Communications. The impact of the curbs will gradually abate as “liquidity is so abundant in a credit binge,” she said.