(Yicai Global) May 15 -- Authorities in the city of Dandong on the China-North Korea border have brought in restrictions on property sales in the city after prices surged 57 percent in the two days following North Korea’s announcement of denuclearization plans on April 21.
The municipal government has brought in measures to stop sales of newly-built homes within two years of the original purchase, it said on its official WeChat account, adding that subsidies for house buyers will be withdrawn and an upcoming housing fair canceled.
Separated from the North Korean town of Sinuiju only by the Yalu River, Dandong is China’s largest trade city with the state. Housing sales been falling in recent years as people increasingly moved away from the city. Local authorities put in place a range of incentives in 2015 in an attempt to breathe new life into the market.
However, with North Korea’s denouncing of nuclear weapons and plans for reform and opening-up, the city saw a spike in house prices, especially in its new areas where some properties priced at CNY3,500 per square-meter rose to CNY5,500 per square meter in just two days.
Editor: William Clegg