According to Michael Pettis, who teaches finance at the University of Beijing and is a senior associate at the Carnegie Endowment for International Peace, China "is awash in cash and credit," stoking fears of an out of control housing bubble.
Housing prices rose by an average of 3.1 percent in February in many big cities in China, and the cost of buying a house has doubled in the past five years.
Governments in Beijing and Shanghai are taking steps to slow this growth, fearing an oncoming housing bubble and growing discontent about social inequality.
They are contemplating imposing annual property taxes, which currently do not exist in China, and have levied a capital gains tax of 20 percent on property sales. Additional measures include restricting unmarried people to one residence in Beijing and making it difficult and more expensive to take out a third and second mortgage in Shanghai by instructing banks to refuse loans to prospective buyers.
The governments in Beijing and Shanghai have also committed themselves to building more affordable housing to accommodate migrants into the cities.
So far, players in the housing market have managed to find loopholes in regulations, causing markets to soar, reports David Barboza.
FULL STORY: 2 China cities move to cool overheated housing market
Oregon Passes Exemption to Urban Growth Boundary
Cities have a one-time chance to acquire new land for development in a bid to increase housing supply and affordability.
Where Urban Design Is Headed in 2024
A forecast of likely trends in urban design and architecture.
Savannah: A City of Planning Contrasts
From a human-scales, plaza-anchored grid to suburban sprawl, the oldest planned city in the United States has seen wildly different development patterns.
Washington Tribes Receive Resilience Funding
The 28 grants support projects including relocation efforts as coastal communities face the growing impacts of climate change.
Adaptive Reuse Bills Introduced in California Assembly
The legislation would expand eligibility for economic incentives and let cities loosen regulations to allow for more building conversions.
LA's Top Parks, Ranked
TimeOut just released its list of the top 26 parks in the L.A. area, which is home to some of the best green spaces around.
City of Rochester
Boston Harbor Now
City of Bellevue
HUD's Office of Policy Development and Research
Mpact Transit + Community
HUD's Office of Policy Development and Research
City of Birmingham, Alabama
City of Laramie, Wyoming
Colorado Department of Local Affairs
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.