State media last week signaled the end of price caps by announcing that the government had approved prices in a new luxury Shanghai condo complex for 160,000 yuan per square meter, or about $3.8 million for a two-bedroom unit, and in a Beijing complex for about 140,000 yuan per square meter. Beijing's cap had been 40,000 yuan per square meter.
Meanwhile, the Inner Mongolia city of Hohhot scrapped a rule that restricted individuals seeking to buy second homes as investments. The rule, like the price caps, was aimed at keeping prices affordable. And the city of Jinan, in Shandong Province, recently promised to adjust its rules in order to "foster a healthy property market."
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