China has taken action to cool its soaring real estate market. Four major cities in the country have put restrictions on new property purchases. Housing prices have been skyrocketing across China, especially in tier-1 and tier-2 countries.

The four cities which announced the latest restrictions are Chengdu, Jinan, Wuhan and Zhengzhou. Several measures have been taken to control the unprecedented rise in China's housing market. The average new home price in China's 70 major cities showed an annual increase of 9.2 percent in the month of August, surpassing the 7.9 percent increase recorded in July.

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Chengdu now will allow buyers to purchase only one property in certain city districts. Buyers who are looking to acquire their second property will be required to make the down payment of no less than 40 percent of the purchase price. The local government also said that it would take action against developers who have not started their promised construction activities.

Jinan will not allow people who already own three properties to buy another. The down payment requirement for people looking to buy their first home purchase has been increased to 30 percent.  

Meanwhile, Wuhan increased the down payment requirement for a second home purchase to 50 percent. The down payment required for first house purchase is set at 25 percent.

China is tightening the credit expansion in its housing market. The government is also looking to clamp down on rumor-mongering, which has led to excessive speculation in the market. Xinhua reported that China's Ministry of Housing and Urban-Rural Development has investigated 45 developers in this regard.

Tagschina, Chengdu, Wuhan