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1、TheglitterofbronzeChina’smid-sizedcitiesareenjoyingapropertyboomItisspeculative,butnotcrazyFORyearsWuhu,acity(pictured)inthepoorcentralprovinceofAnhui,wasonthefrontlineofanationalefforttoreduceaglutofunsoldhomes.NewpropertydevelopmentsstretchedintothehazealongtheYangzir
2、iveronthetown’swesternedge.Butbuyerswerescarce:althoughAnhuihasapopulationaboutthesizeofItaly’s,manyofitspeoplehavelongpreferredtoworkinricherpartsofthecountry.OfficialsinWuhutriedtoenticelocalstobuyhomes,offeringtaxbreaks.Atonepointtheyevenpromisedtosubsidisethe cost,a
3、nactofdesperationthatmadeWuhuanemblemofChina’sreal-estatewoes.Sinceearly2016,however,thecity’spropertypriceshavesoaredbymorethan30%.Earlierthismonththecitysharplychangedtack,introducingmeasurestocurbspeculation.Forexample,itrequiredthatbuyersofnewhomeswaitatleasttwoyear
4、sbeforeselling.Developerswereorderedtosetpriceswithinpredeterminedranges.Thecityalsovowedtoexpandthelandavailablefordevelopment.Theglutofunsoldhomesis,inotherwords, nomore.Ashortageisthenewconcern.ThestrikingimprovementinWuhu’spropertymarkethasechoesaroundthecountry.Iti
5、soneofthe60orsocitiesdeemedtobe“thirdtier”.Thedesignationrefersnotjusttotheirpoliticalrankingandsize(mediumbyChina’sstandards,withpopulationsofroughly1m-3m);untilrecentlyitalsosummedupprevailingsentimentabouttheirprospects.Analystsandinvestorshavegenerallybeenpositiveab
6、outChina’sfirst-tiermegacities(Beijing,Shanghai,ShenzhenandGuangzhou)anditssecond-tiergiants,especiallythoseingoodlocationssuchasHangzhouintheeastandFoshaninthesouth.Buttherewaslessenthusiasmforcitiesrankedinthethirdtierandbelow.Theywereseenassufferingfromweakindustrial
7、bases,flimsysocialservicesandasteadybrain-drainastheirmosteducatedresidentsleftformoreexcitingplaces. YetarallyinChina’spropertymarket,whichbeganinitsbigcitiesin2015,isfilteringdowntothesealso-rans.Housingpricesinthird-tiercitiesareupby7%overthepastyearonaverage,andbymu
8、chmoreinthebestperformers(seechart).Theirmarketshaveremainedhotthisyear,evenwhiletheirbiggerpeershavecooledoff