China curbs housing development to fight supply glut

Land sales restrictions could hit 40% of big cities, hurting key income stream

20240606N Beijing condos

High-rise condominiums outside Beijing. Many cities are grappling with an oversupply of housing. (Photo by Mizuho Miyazaki)

KENTARO SHIOZAKI, Nikkei staff writer

BEIJING -- China has moved to bar housing construction in some areas in its latest attempt to shrink a mountain of unsold homes that is weighing on prices.

The new restrictions stop local authorities from selling land usage rights to developers in cities with unsold housing inventories that would take three years or more to clear -- a criterion that more than 40% of major cities meet.

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