Daily Management Review

China sets to eliminate speculation in the housing market


The Ministry of Housing and Urban and Rural Development of China held a conversation with officials from five urban districts, where there was a rapid rise in housing prices, and instructed them to immediately resolve the problem of speculation. This is reported by the China Times.

Mstyslav Chernov
Mstyslav Chernov
Conversations with officials from Haikou and Sanya, the two major cities on the Hainan Island in the province of the same name, are held for the second time. Between May and August, Haikou and Sanya entered the top three cities with the fastest growing housing prices in China.

Prices for new commercial housing in Haikou and Sanya grew by 14.8% and 11.1% respectively, prices for secondary housing - by 6.4% and 7%.

The ministry put forward stricter demands on local authorities during the last conversation. The attitude of the ministry towards speculation has changed from "deterrence" to "brutal suppression".

Another three cities that attracted the attention of the ministry are Yantai in Shandong Province, Yichang in Hubei Province and Yangzhou in Jiangsu Province.

The boom in the housing market in China gave the country's economy a significant boost, but caused fears about the emergence of "bubbles". Since late 2016, Beijing has taken decisive measures to reduce speculative real estate purchases.

Following the annual Central Conference on Economic Work in December, Chinese leaders said earlier that supply of borrowed funds should support purchase of real estate for living and strictly suppress speculation.

In November, China's Central Television (CCTV) reported that the country would strengthen financial regulation and take tough measures to combat speculation in the real estate market in order to stabilize prices and prevent the emergence of "bubbles".

China also promised to improve management of the land market and prevent cases of overstatement of land prices, which push up prices for real estate.

source: chinatimes.com