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Property policies to curb speculation
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Real estate experts have welcomed the latest round of macro-control policies on the property market. The policies aim to more effectively curb speculation, and could pave the way for lower housing prices in some cities.
Experts say the tighter policies will be effective. They come at a time when many prospective home buyers are returning to the market and investors are selling their shares in developers.
China's biggest developer, Vanke, saw its shares drop more than 8 percent on Monday. The shares of nearly 10 other developers also slumped more than the daily limit of 10 percent.
The deputy chairman of China Real Estate & Housing Res. Ass., Gu Yunchang said, "This round of the policies is unprecedented in terms of its frequency, range and degree of control. With the administrative and financial measures, I think the policies will curb speculation on properties."
The new policies call for more dwellings smaller than 90 square meters. It aims to cool the real estate market's boom and cut housing prices in some cites.
Zhu Baoliang, who's the chief economist of State Information Center, said "I predict the property demand will fall in the second half of the year and housing prices will rise steadily. However, prices in some cities will fall after their steep rise since the second half of last year."
Experts say this round of macro control measures could help solve the long-term housing problem in China.
"The property policies are addressing the core problems. The consumption tax, housing trade tax and the property tax will all be levied." said Yi Xianrong, the director of Inst. of Finance & Banking, CASS
The latest round of reforms place a greater focus on social welfare in a bid to encourage houses to be lived in, and not traded.
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