Yangtze River Delta cities strive to cool realty market

13:37, October 13, 2010      

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Hangzhou, the capital of eastern China's Zhejiang province, released its local regulations on the property market on Oct. 11 limiting families to the purchase of one new apartment.

On the same day, the Jiangsu provincial government urged cities that witnessed excessively high housing prices to formulate local regulation policies.

Immediately after the central government released 10 new rules to address housing speculation, cities in the Yangtze River Delta regions did not follow up and issue detailed regulations.

However, as central government ministries try to curb property speculation and soaring prices after the markets boomed in August and September, Shanghai led Yangtze River Delta cities in local policymaking.

"We expect that a large number of cities nationwide will formulate their own local regulations," said Zhao Hangsheng, a researcher with Zhejiang University.

The central government emphasized in its recently-released rules to curb housing speculation that local governments should carry out detailed rules to target local markets.

"In the first three quarters of 2010, Shanghai's economic situation has been pretty good. Now is the best times to issue detailed local regulations," said Zhao Lijia, general manager of a Shanghai-based property developer.

Zhao Lijia said the effect of the new rules should be assessed after a few months.

"The new policies will inhibit some rigid demand, but there will be a fierce rebound after potential house-buyers wait and see for a few months," Zhao Lijia predicted. "Property tax may be used to curb the rebound."

Zhao Hangsheng agreed that a trial run of property taxes is very likely to be launched in Shanghai.

Ningbo, another city in Zhejiang, released detailed rules to address the property boom. Wenzhou is expected to be the province's third city to have local housing regulation policies.

By People's Daily Online


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