Chinese Government to Come Down on Property Price Rises in H2

China will not allow property price rises to continue in the second half of the year according to a senior government official...

China will not allow property price rises to continue in the second half of the year according to a senior government official. Zhang Ping, head of the National Development and Reform Commission has vowed to prevent any price rebounds for the rest of the year.

"We will stabilize control measures to curb speculation and increase housing supplies, especially small and mid-sized housing," said Zhang in a report delivered at an on-going bimonthly session of the national legislature.

According to the report, prices fell in 58 of the 70 cities monitored in July, proof that the measures already implemented are capable of controlling prices according to Zhang. The report also contained an update on the progress of the other arm of the government's policy to bring housing back in line with its communist ideals, namely building millions of social housing units in a very short space of time. According to Zhang construction of 5.8 million low-income housing units had started by the end of July, which is 77 per cent of the government's 2012 target.

Another report issued on the same day told us that the central government invested 195.3 billion Yuan ($30.8 billion) in social-housing projects between January and July according to Xie Xuren, Minister of Finance.

According to Zhang authorities have stepped-up monitoring of the construction, distribution and management of social housing.

Intensive home price controls contributed to a drop in government income from the transfer of rights for state-owned land in the first seven months, which was 27.1 percent lower year-on-year, said Xie.

Xie pledged to promote property tax reforms on a trial basis and strictly implement differentiated taxation policies for property transactions.

- Monday 03 September 2012

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