CONTROL ON PROPERTY SECTOR WON'T BE RELAXED
The average new home price in 100 major Chinese cities reached 8,791 yuan (1,397 U.S. dollars) per square meter in November, up 0.26 percent from October, data released by the China Index Academy showed last Monday.
The growth rate, up from 0.17 percent in October, marked the sixth consecutive month of month-on-month recovery, the private housing research institution said.
The recent rebound in the market shows that "demand continues to be strong" among homebuyers who buy residences for their own use rather than as investments, said Zhang Lei, an analyst with real estate brokerage firm Century 21st Property.
However, although the statistics signaled a warming real estate market, "Chinese government won't loosen the property market control in the near future," said Yu Yongding, a researcher with the Institute of World Economics and Politics (IWEP) at the Chinese Academy of Social Sciences.
China's real estate policies are likely to remain stringent in the coming five to 10 years, according to a research paper released in November by the China Index Academy.
Curbing housing purchases for investment purchases will continue to be the policy's chief priority. That end will be pursued by restricting the number of houses that can be purchased and continuing to offer slightly reduced mortgage rates to first-time homebuyers in the short run, the report said.
Despite the tight real estate policies, the pace of urbanization and the gradual improvement in residents' incomes in China will still help the industry to develop soundly in the coming decade, it said.
The Chinese government has repeatedly reiterated its firm stance on property market control and vowed to maintain tightening measures like bans on third-home purchases and property tax trials, which have been introduced in succession since 2010.
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