China will look to deflate the property bubbles and regulate its rental housing market.
China will take a varied approach to regulating its overheated property market, with measures ranging from financial and fiscal to taxes and land, said President Xi Jinping.
According to a Bloomberg report, Xi noted that the country needs to deflate the bubbles, as well as regulate the rental housing market to better meet the housing needs of the population.
“The country should accurately understand the residential feature of housing” and establish a better mechanism for rentals and purchases to better serve new urban populations, said Xi at a meeting of the Central Leading Group on Finance and Economic Affairs.
“The market will play the leading role in catering to multi-layered demand, while the government will take care of basic housing demand.”
Policy makers revealed plans to introduce a prudent and neutral monetary policy in 2017, while noting that controlling and preventing financial risk to avoid property bubbles will be the government’s priority.
“Houses are built to be inhabited, not for speculation,” said the post-meeting statement.
China’s red-hot property market continued to cool last month as the government introduced renewed home-buying curbs.
Excluding government-subsidised housing, new home prices increased in 55 of the 77 cities monitored by the government in November, down from 62 in October, revealed the National Bureau of Statistics.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
