Couples seek divorce over real estate rumours

Chinese couples looking to buy house in Shanghai city are queuing up to seek divorce amid rumours about new regulatory measures increasing down payment to 50 per cent to buy a new flat, official media here reported.

With rumours swirling about new regulatory measures regarding home sales, some Shanghai residents have taken it upon themselves to pre-emptively seek divorces in order to avoid the impact of the possible new rules, state run People’s Daily Online reported.

As the divorce applications surged one divorce registration office was forced to put up a notice requesting that any additional divorce-seeking couples return at a later date, the report titled “Shanghai residents queue to divorce amid worries about stricter real estate regulations”, said.

A clerk at the office said that applicants had dramatically increased beginning on August 29, the report said.

“Over 70 couples came today to get divorced, which is beyond the office’s processing capacity,” he told the state run daily.

At present, a single resident without a home registered under his or her name can buy a new home with a 30 per cent downpayment in Shanghai, China’s financial hub. However, according to the rumours, tighter rules will be implemented starting in September, which will increase the required downpayment to 50 per cent.

The way many couples see it, if one spouse transfers his or her house deed to the other spouse and the couple then gets a divorce, the first spouse will still be able to buy a new home with a 30 per cent downpayment, the report said.

According to the Shanghai Real Estate Trading Centre, sales of new homes on August 29 exceeded 1,066 units, marking the third day since the rumours began that sales exceeded 1,000 units.

Industry insiders in Shanghai said the surge in sales has a lot to do with the rumours about tightening regulatory measures.

However, the Shanghai Municipal Commission of Housing and Urban-Rural Development has denied the rumour, refusing to discuss or speculate on the unconfirmed regulations, the report said.