(Yicai Global) Dec. 12 -- Zhangjiagang in China's eastern Jiangsu province has reinstated a ban on reselling property after just yesterday saying it was to be ended, indicating that local governments are still undecided about policy adjustments to counter the cooling real estate market.
The two-year prohibition on reselling property is still in effect, online news outlet The Paper reported today, citing the same insider at the city's property registration center who had yesterday received verbal notice that the ban would be lifted. Any official cancellation must come in writing from the authorities, he added.
Zhangjiagang's resumption of the ban may reflect local government concern in regard to policy adjustments, said Yan Yuejin, head of research at Shanghai E-House Real Estate Research Institute. This indicates that any changes remain committed to stability.
Zhangjiagang limited the resale of real estate in August 2017 by preventing both first- and second- home buyers from selling their properties within two years of purchase. However, a recent drop in housing prices has prompted several major Chinese cities to relax policies in the last month to offset the downturn.
It is possible that property controls will loosen after next year's two key political meetings of the National People's Congress and the National Committee of the Chinese People's Political Consultative Conference which will set the tone for the coming year.