Monday, 3 September 2012

Property controls still vital, says Wen

Chinese Premier Wen Jiabao has reiterated the country still needs to resolutely curb speculative property investment as controls on the real estate sector are still in a "critical period."

Wen made the remarks while making an inspection tour of affordable housing projects in Tianjin in North China Friday.

He pointed out that the government's controls over skyrocketing housing prices have been in place for more than two years, and that the excessive price rises have been generally curbed.

"But the controls over the real estate market are still in a critical period," he warned.

He said that increasing the effective supply of homes to the market will be more important to consolidate the previous achievements in stabilizing housing prices.

China has tightened its curbs on the property sector since 2010 in an effort to bring rising home prices back to a reasonable level. The government has restricted home purchases in several cities while requiring higher down-payments and introducing property taxes.

Official data showed that 50 cities out of a statistical pool of 70 major cities recorded higher new home prices month-on-month in July, up from 25 in June, according to the National Bureau of Statistics.

Wen said that progress in the nation's affordable housing projects will provide important support in stabilizing property prices and consolidating the government's efforts to tame excessive home prices.

The premier said the country's affordable housing should not be evaluated solely on the number of buildings completed or in construction, but also on whether the homes are delivered to the market in a timely manner to solve people's living problems.


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