The dramatic increase in home prices in China’s first- and second-tier cities has prompted a number of authorities to reactivate home purchase restrictions.

On Sept. 28, Kunshan, a city under the administration of Suzhou, issued a directive for the real estate market requiring that home buyers without Suzhou residence permits provide proof of payment of individual income tax and social securities when buying a second home.

Nanjing's restrictions forbid families without Nanjing residence permits to buy new or secondhand homes in the downtown area. Households that do have Nanjing residence permits but already own two homes are also forbidden from buying new homes.

Previously, Suzhou and Xiamen also released home purchase restrictions. So far, three of the four cities that witnessed the sharpest spike in home prices have imposed such restrictions. Industry insiders predict that some second-tier cities are likely to reactivate restrictions in the future, including Hefei, Wuhan, Zhengzhou, Tianjin, Fuzhou, Dongguan, Wuxi and Shijiazhuang.

However, industry experts have expressed doubt about the effectiveness of such measures. According to Zhang Dawei, chief analyst of Zhongyuan Real Estate, it is already too late to enact the policies, as home prices in many cities have almost doubled.

"The restrictions fail to address the root cause of soaring home prices," Zhang said, adding that excessive funds and a lack of investment-worthy assets have pushed home prices up. To stabilize the market, Zhang suggested that credit go to the real economy rather than just the real estate sector. Moreover, he stated, there must be sufficient land supply.