Shanghai authorities held a meeting to discuss measures to cool a surge in property prices after recent frenzied residential homebuying, according to people familiar with the matter.
The municipal governmentâ€™s National Development and Reform Commission held discussions with regional authorities from the Peopleâ€™s Bank of China (PBOC) and the China Banking Regulatory Commission (CBRC) , said the people, who asked not to be named because the matter isnâ€™t public.
Possible measures weighed include tightening mortgage policies for second-home buyers who plan to purchase larger properties, the people said.
Residential home prices in first-tier cities including Beijing, Shanghai, and Shenzhen have surged amid central bank monetary stimulus and a relaxation of housing curbs intended to boost real estate investment.
Prices in Shanghai, Chinaâ€™s financial hub, jumped 18 percent in January from a year earlier, according to official data.
The Shanghai Stock Exchange Property Index tumbled 2.6 percent on Thursday, with Future Land Holdings Co. leading declines after falling 6.1 percent.
The cityâ€™s real estate market has an â€œ irrationalâ€ mood and should be more tightly controlled with a step-up in regulation, Shanghaiâ€™s most-senior official said during annual legislative meetings in Beijing last week.
The local authorities on Friday also looked at increasing scrutiny of down-payment loans to prevent potential financial risks, said the people, without giving more details.
Chinese regulators plan to bar lenders including developers, housing agencies, small-loan companies and peer-to-peer networks from offering loans for down-payments, people familiar with the matter said earlier this week.
Other options discussed at the Shanghai meeting include maintaining existing home-purchase limits, restricting the issuance of pre-sales licenses for high-end apartments, and adding to the supply of small and medium-sized properties during land-use planning, the people said.
The discussions were first reported by the 21st Century Business Herald.
New-home prices in Shanghai jumped 2.2 percent in January from a month earlier, while existing home prices increased 2.7 percent, the most since 2013, according to data from the statistics bureau.
The media office of Shanghai NDRC didnâ€™t immediately respond to calls and a fax seeking comment.