Amid rising housing prices, China’s property measures will stay in place, reported the People’s Daily. At the same time, local authorities have been advised to increase housing supply and implement policies restricting home purchases.
“With more affordable housing projects put into operation and market expectations kept stable, the conditions do not exist for full-scale rebound in house prices,” said a senior official at the Ministry of Housing and Urban-Rural Development.
This comment comes after speculation over a new round of property inflation, backed by data revealing an increase in home sales as well as property prices following a decline for eight consecutive months.
China home prices rose by 0.1 percent for the second consecutive month in August from July. Meanwhile, revenue from property sales grew for the third month in August, signs of recovery in the sector.
The official noted that the price hike was supported by demand from first-time buyers and not because of speculative demand from investors.
Officials at the Housing Ministry declined calls to ease restrictions in the property market and sent out eight inspection teams to monitor if local governments are continuing to implement curbs.
“Macroeconomic control over the property market is at a critical point and we are still facing an arduous task to consolidate the effect of property market curbs,” added the official.
Beijing plans to implement a long-term plan to “improve macro-policy control” in the property market and will expand a trial property tax reform programme beyond Chongqing and Shanghai.
Related Stories:
British buyers prefer new property
British developers still luring Singapore buyers
Student accommodation buyers urged to do their homework