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First Chinese city openly relaxes housing controls

Published on Jun 27, 2014 8:17 PM

BEIJING (REUTERS) - A city in northern China re-affirmed its decision on Friday to allow people to buy more than one home, after appearing earlier this week to have rowed back on a move that could risk angering the central government.

Hohhot, in the Inner Mongolia region, is the first city to openly relax housing restrictions.

Any moves that fuel demand can be controversial with home prices already near record levels. The central government would prefer local governments to stand firm in stamping out property speculation as far as possible as it fears that unaffordable property could become a cause of social unrest.

But, some regional governments, who depend on land sales from a buoyant property market for a large chunk of their revenues, have quietly loosened controls.

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