An Overhaul on China’s Property Market?

One day after two officials were disciplined for land misuse, China’s central government ordered top-level investigations into property markets in a dozen cities and provinces, including three municipalities: Beijing, Shanghai, and Tianjin.

China has released a large number of regulations and laws to curb the escalating property prices, but few were seriously enforced.

From Associated Press:

China’s cabinet has ordered top-level investigations of real-estate markets in a dozen Chinese cities and provinces, the government said Thursday.

Teams of officials from the Ministry of Construction and other agencies responsible for overseeing were being dispatched to Beijing,

Shanghai, Tianjin and nine provinces to check if government economic policies are cooling local property markets, the official Xinhua News Agency reported.

The report comes amid a crackdown on the unauthorized use of land for property projects and other construction. The government has ordered a slew of new regulations aimed at curbing speculative buying that is blamed for driving prices beyond the means of many families. “Housing prices in many cities … have defied macro control policies and continued to soar. Some have reported annual rises of 20%,” the Xinhua report said.

It said the cabinet, or State Council, ordered teams from various ministries to Beijing, Tianjian, Liaoning, Inner Mongolia, Jiangsu, Jiangxi, Shandong, Hubei, Guangdong, Sichuan and Shaanxi. Earlier this week, a delegation from the Ministry of Construction inspected the situation in Shanghai, the report said. It gave no details on the delegation’s findings [Full Text].

Also read How Shanghai is Cooling the Property Market

September 28, 2006 11:03 AM
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Categories: Economy