Five Measures To Tighten Control Over Real Estate Market

At a recent State Council executive meeting convened and presided by Premier Wen Jiabao, the current development of the real estate market was analysed and steps are to be taken to continue to strengthen control over the situation.

It was pointed out at the meeting that since this year, growth of property prices in most cities has slowed down markedly, speculation in the property market is under effective control, and property prices in cities with excessively high prices are stable with signs of declining. As at the end of June, construction work for over five million units of low-income housing nationwide has commenced, accounting for over 50% of the annual target. It is projected that within this year more than four million units of low-income housing which are currently under construction will be completed. Currently, the major problems are: the pressure of rising property prices in certain cities remains great, with efforts of exercising control in some cities slackening; the progress of constructing low-income housing is unbalanced, with low construction rate and insufficient social capital input in facilities for low-income housing in some places. Hence, greater efforts have to be made to improve project quality and allocation management.

The meeting concurred that at present control of the property market is at a critical stage. Efforts must be made to uphold the direction of control, tighten control, implement various policies and measures, and continue to consolidate and strengthen the effects of control.

First, resolute action will be taken to ensure that local governments perform their duty of controlling the property market and guaranteeing the supply of low-income housing. All localities must devote great efforts to achieving property price control targets and further implement the various control policies introduced by the State Council. In regions where property prices are excessively high, the grip on the property market will be tightened and more efforts will be made to improve the relationship between supply and demand in order to make property prices return to a normal track.

Second, efforts will be made to improve relevant policies and measures, strengthen government input into and support for loans in a move to ensure that construction work for 10 million units of low-income housing will start by the end of November this year. Steps will be taken to guarantee work quality and safety in order to be accountable to the people. A sound, open and transparent housing allocation system and exit mechanism has to be set up to ensure that the allocation of low-income housing is fair and just and that management is orderly and scientific.

Third, action will continue to be taken to strictly implement the differential mortgage policy, taxation policy and restricted purchase policy in a move to curb property speculation and to regulate housing demand. In cities where the restricted purchase policy is in place, continued efforts should be made to strictly implement the policy. In second and third-tier cities where property prices rise too fast, the restricted purchase policy should be introduced.

Fourth, steps will be taken to implement this year’s residential housing land supply scheme to ensure that land is made available for low-income housing and that the pace of supplying land for general commodity housing will be expedited. Regulations for the requisition of and compensation for houses built on state land will be strictly enforced.

Fifth, efforts will be made to regulate the residential leasing market in a bid to prevent rentals from rocketing. Action will be taken to strengthen market monitoring and supervision, and to fine-tune the property market information disclosure system.

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