Guangzhou has frozen the planning and approval of new commercial apartment projects. A memorandum from the Guangzhou Municipal Bureau of Planning and Natural Resources has put a firm halt on any new project, while existing projects with approvals can proceed unaffected.
The crackdown targets a longstanding loophole that allowed the development of residential apartments on land approved only for commercial or service properties. The practice has provided a backdoor for buyers to sidestep home purchase restrictions and benefit from the lower price of commercial apartments compared with residential properties.
The document demands rigorous scrutiny in the approval of commercial property projects. Specifically, floor plans shall not include residential function labels such as apartment, bedroom or living room. Designs must fit commercial use, with communal corridors and public restrooms, rather than resemble residential homes.
