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BEIJING, May 22 (Xinhua) -- With housing prices and sales stagnating in China's major cities following tough property controls, smaller cities are starting to join in.
Last weekend
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In Baoding, a city in north China's Hebei Province, certain properties are subject to a 10-year lock-up period before they can be resold.
In Jiaxing, a city in east China's Zhejiang Province, non-residents will not be able to resell houses within two years of buying them.
With such restrictions
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Smaller cities have become the main battleground as China strives to contain housing price rises through restrictions on purchases and increased minimum down payments. In Beijing, for example, the down payment ratio for second homes was raised to 60 percent in mid-March
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Dozens of cities now have price caps and credit limits.
Latest data showed that the curbs may be taking effect. In 30 of 70 large and medium-sized cities surveyed, price rose more slowly year on year in April, six more cities than in March, according to the National Bureau of Statistics (NBS). Prices in 31 cities declined in April or grew more slowly in April, said the NBS.
The trend in smaller cities is quite different. In April, prices for new houses in third-tier cities expanded 0.4 percentage points faster than March
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"Control of the housing market in major cities has had a spillover effect on smaller cities, boosting demand," said Ding Zuyu, chief executive of E-House China, a real estate agent.
Extending restrictions from major cities to nearby smaller cities can relieve the spillover somewhat and avoid irrational speculation in these cities, said Ding.
In an interview with Xinhua last month
Cheap Air Max 95 Outlet , Ning Jizhe, vice head of the national economic planner, said while progress had been made in containing the housing market, there were still some "deep-rooted structural problems."
"There is still upward price pressure in first and second tier cities, and it will take a long time for third and fourth-tier cities to digest their inventories," he said.
Once curbs are relaxed
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To maintain long-term stability, an expans.
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