ID :
195193
Fri, 07/15/2011 - 11:38
Auther :
Shortlink :
https://oananews.org//node/195193
The shortlink copeid
China set to further tighten property market
HONG KONG, July 15 (Yonhap) -- China said Friday that it will take additional measures to cool its hot real estate market as investors' appetite for housing remains strong amid spiraling inflation.
The move comes following a government report that property sales jumped to 499.2 billion yuan (US$77 billion) in June, up 31 percent from the previous month, despite a recent slew of measures including stricter down-payment ratios and mortgage rates.
In a statement posted on its Web site, the Chinese government said it will take steps to restrict house purchases and discourage speculators in the property market. The government, however, did not give specifics.
The announcement is in line with a decision made at a Chinese cabinet meeting on Wednesday, chaired by Premier Wen Jiabao. The State Council urged smaller cities with surging property prices to step up their efforts to curb them.
Due to rigorous measures taken by municipal governments, property prices in the country's large cities, such as Beijing, Shanghai and Shenzhen, have been more stabilized. However, smaller cities recorded higher increases than larger metropolitan areas.
According to the China Real Estate Index System (CREIS), a data service provided by China's largest online real estate firm, Sofun, new home prices in top 10 cities increased at a much slower pace of 2.87 percent in June than a year earlier.
However, prices rose at faster rates of 4 to 10 percent in smaller cities such as Weifang and Lanzhou, CREIS said.
Market watchers stressed the need for China to keep reining in housing prices.
"Housing prices in many cities still stay high, making it impossible for ordinary people to buy," said Guo Songhai, a professor at Shandong Economic College. "The government must control speculative moves in the market and continue providing affordable public housing."
The move comes following a government report that property sales jumped to 499.2 billion yuan (US$77 billion) in June, up 31 percent from the previous month, despite a recent slew of measures including stricter down-payment ratios and mortgage rates.
In a statement posted on its Web site, the Chinese government said it will take steps to restrict house purchases and discourage speculators in the property market. The government, however, did not give specifics.
The announcement is in line with a decision made at a Chinese cabinet meeting on Wednesday, chaired by Premier Wen Jiabao. The State Council urged smaller cities with surging property prices to step up their efforts to curb them.
Due to rigorous measures taken by municipal governments, property prices in the country's large cities, such as Beijing, Shanghai and Shenzhen, have been more stabilized. However, smaller cities recorded higher increases than larger metropolitan areas.
According to the China Real Estate Index System (CREIS), a data service provided by China's largest online real estate firm, Sofun, new home prices in top 10 cities increased at a much slower pace of 2.87 percent in June than a year earlier.
However, prices rose at faster rates of 4 to 10 percent in smaller cities such as Weifang and Lanzhou, CREIS said.
Market watchers stressed the need for China to keep reining in housing prices.
"Housing prices in many cities still stay high, making it impossible for ordinary people to buy," said Guo Songhai, a professor at Shandong Economic College. "The government must control speculative moves in the market and continue providing affordable public housing."
