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People's Daily Online>>China Business

Policy stability seen for estate market

By Hu Yuanyuan  (China Daily)

08:29, February 27, 2012

Potential homebuyers at a real estate exhibition in Suzhou, Jiangsu province, on Sunday. Analysts said that the nation's policies are unlikely to change in the short term and the government still aims to bring home prices down to a reasonable level. (Wang Jiankang / for China Daily)

BEIJING - China is not likely to loosen its rigorous real estate policies in the short term but may give the market a bigger role in setting prices in the long run, industry analysts said ahead of the opening of the two major political sessions.

"The central government will probably maintain its existing real estate policies in the short run," said Qin Xiaomei, chief researcher at Jones Lang LaSalle (JLL Beijing).

However, in the long term, the government will let financial factors play a bigger role in setting prices, such as by collecting property taxes instead of restricting home purchases, Qin added.

Since the start of 2011, the government has moved to cool property prices, such as requiring higher minimum downpayments and setting limits on the number of homes a family could buy in some cities.

Government control of the property market will be among the hottest topics among deputies of the upcoming annual sessions of National People's Congress and Chinese People's Political Consultative Conference in Beijing.

"Some measures, such as restricting the amount of homes a family could purchase, will be gradually phased out once property prices fall back to a reasonable level," said Carlby Xie, head of research at real estate consultancy Colliers International (Beijing).

People who have held Shanghai resident cards for more than three years are eligible to buy a second home despite their non-permanent residence status, a municipal housing official confirmed to local media on Wednesday for the first time, triggering market rumors that housing regulations would be eased in the city.

Before that, Wuhu, a third-tier city in eastern Anhui province, abruptly halted a plan to give home buyers subsidies for residences smaller than 90 square meters.

The policy shift reflected both the central government's determination to continue its policies as well as the local government's fiscal plight, said Xie.


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elee at 2012-02-27183.39.30.*
IT IS TOO IMPORTANT TO ALLOW MARKET FACTORS TO DETERMINE REAL ESTATE PRICES WHILE LOCAL GOVERNMENTS MUST BUILD ENOUGH AFFORDABLE HOMES FOR THE POORER FOLKS TO PURCHASE AS 1ST-HOME IN ALL VILLAGES, TOWNS AND CITIES. INVESTMENTS OF REAL ESTATES ARE HEALTHY BUT MUST BE TAXED DIFFERENTLY AT HIGHER RATES THAN THE 1ST-FAMILY HOME OF EACH ADULT CITIZEN OLDER THAN 23 YEARS OLD. ELSE, MILLIONS OF "UNDER AGE" ARE BEING MADE USE OF AS 'PROXIES' OF OTHERS TO KNOCK UP HOME PRICES!
  

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