Govt focuses on housing

10:02, June 29, 2010      

Email | Print | Subscribe | Comments | Forum 

Developers and homebuyers have started speculating that the policies to rein in housing prices will fade away without having taken effect. But the government "won't give up half way," an official told the Global Times Monday.

"We really don't what to see that the homebuyers and developers enter into a standoff, with sales volumes declining dramatically while home price stays high," said Wang Juelin, deputy director of Policy Research Center with the Ministry of Housing and Urban-Rural Development. "To make matters worse, some local governments haven't disclosed how they implemented the policies."

Both homebuyers and developers have been speculating that the government's drive to lower housing prices would lose steam in the second half of the year due to the pivotal role real estate still plays in the economy.

Major government institutions from the State Council to the China Banking Regulatory Commission have taken part in the effort to keep housing prices from rising out of control, to little effect.

The central government, however, is taking a tougher stance this time, Wang said, adding "the possible negative impacts have been assessed and we've prepared for them. Our GDP growth target is only 8 percent this year, which isn't too high."

Wang said that the government is also trying to adjust to the country's economic structure, rather than just trying to suppress home prices. "It's now up to local governments to increase land supply and developers to stop hoarding apartments."

To date, only major cities like Beijing and Shanghai have disclosed details concerning their housing policies. Most other local governments have remained vague.

But some developers, including world-leading Vanke, have already begun to lower prices.

Kitty Cheung, head of investor relations at Beijing Capitaland, said the developers will offer a batch of newly-built houses at lower prices in two or three months. "But the price of apartments in the cities' central areas won't go down," she said.

And Tony Ho, a property analyst with BOCOM International Holdings Company said the developers would face capital shortages if sales volumes keep declining and be forced to lower prices. "We expect that housing prices will decline in August or September," he said.

Source: Global Times


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A man visits "Thy Word Is Truth, the Bible Ministry Exhibition of the Protestant Church in China", during its opening at Mount Vernon Place United Methodist Church in Washington DC, capital of the United States, Sept. 28, 2011. Through the Bible's various Chinese versions, ancient or modern, as well as pictures, paintings, calligraphy, art works and historical documents, the exhibition was expected to give an overall understanding of how Bible was brought into China, how it was translated, published, distributed and loved. (Xinhua/Zhang Jun)
  • A visitor passes by in the exhibition of Istanbul design week on Sept. 28, 2011 in Istanbul, Turkey. Istanbul design week will be hosting designers and design exhibitions from around the world in Istanbul from Sept 28 to Oct 2 with the participation of 25 countries. (Xinhua/Ma yan)
  • Red flag flies at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 28, 2011. A spokesperson with China's manned space program said Wednesday that fuel has been injected into the Long March-2FT1 carrier rocket in preparation for launching the Tiangong-1 space module Thursday evening as planned. (Xinhua/Wang Jianmin)
  • A militant loyal to the Libyan National Transitional Council (NTC) waves in a tank near Bani Walid, one of the pro-Muammar Gaddafi strongholds, on Sept. 28, 2011. (Xinhua/Hamza Turkia)
  • Jewish worshippers pray at the Western Wall, Judaism's holiest prayer site, in Jerusalem's Old City on Sept. 28, 2011, ahead of Rosh Hashanah, the two-day Jewish new year which will begin at sunset on Sept. 28 and conclude at nightfall on Sept. 30. (Xinhua/Muammar Awad)
  • High school student Johanna Choapa is helped by her father after announcing the end of hunger strike in Santiago, capital of Chile, on Sept. 28, 2011. The end of the strike took place to make way for a dialogue with the government, seeking to resolve the four-month crisis in the education sector. (Xinhua/Jorge Villegas)
Hot Forum Discussion