(ECNS) -- Areas surrounding Beijing will soon introduce a new round of strict property market controls as home prices keep soaring to take advantage of Beijing's development plans, 21st Century Business Herald reports.
Bolstered by governmental moves, three counties under the administration of Langfang City in Hebei Province -- Sanhe, Dachang and Xianghe -- all saw house prices increase remarkably due to their proximity to the capital.
Homes prices in Dachang county are about 15,000 yuan ($2,300) per square meter, with the highest price reaching 18,000 yuan per square meter. The prices in Yanjiao, Hebei province are nearly 30,000 yuan per square meter. Both areas saw prices double that of one year ago. But in Beijing, the prices of new and resold houses increased by up to 15 and 25 percent respectively in the same period. Regulators will strictly implement measures to cool the overheated property market, the report said.
The market in the mentioned areas began heating up last year after the central government put more emphasis on coordinated development of the Beijing-Tianjin-Hebei corridor and the municipal government of Beijing announced it would move its offices to the suburban district of Tongzhou at the end of 2017, it was added.
According to an expert with a large real estate developer, the Langfang city government began to press ahead with new measures beginning in the fourth quarter of last year, including house purchase restrictions, price caps and loan limits, to rein in price rises in Sanhe, Dachang, and Xianghe.
Langfang's new policies to regulate the property market and stabilize house prices are still under review now and will be issued in the future, a source from the city's government told the newspaper.
In addition, property developers in the three counties of Heibei have also started to slow the pace of new homes put on sale in these markets.
Huang Yan, director of Beijing Municipal Planning Commission, said the city plans to cooperate with Langfang to jointly administer bordering areas, which still needs approval from the central government.
