Beijing tightens rules to turn away commercial property speculators

Beijing housing authorities tightened regulations on commercial real estate projects as a way to cool down a housing market with soaring prices fueled by speculative buyers.

According to an official statement released late Sunday by the city's housing, urban planning, industry and commerce and banking authorities, new commercial real estate projects - including those converted from office buildings to individual units - may be sold only to qualified enterprises, public institutions and social organizations. In addition, the smallest unit for sale should not be less than 500 square meters.

Moreover, personal loans for purchasing commercial real estate also have been suspended. And secondhand commercial housing can only be sold to individuals who have paid income tax or social insurance for five consecutive years and have no houses under their names in Beijing, the statement said.