In March 2017, at least 30 cities nationwide implemented a sequence of measures to rein in rocketing house prices, including restrictions on home purchases and the increase of the minimum down-payment. Meanwhile, China’s central bank has urged banks to strengthen mortgage risk management and crack down on fake divorces used to dodge high down payment requirements, a common strategy adopted by many couples. During the Central Economic Work Conference in December 2016, the top economic planner sent a strong signal by underlining that apartments are for living in, not for speculation. Curbing house price spikes has also been added to the government work report in 2017. Insiders warned that the restrictive measures are likely to tighten in future but their effects will take time to materialize at a time when both home buyers and sellers remain skeptical, since over the years the government has already tried numerous gambits to control prices, but to no avail.
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