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Plan to stimulate property sector submitted to State Council

By Hu Yuanyuan (chinadaily.com.cn)
Updated: 2009-02-10 17:14

A plan to revitalize China's property sector has been submitted to the State Council, or China's Cabinet, for discussion and approval, a source confirmed with China Daily on Tuesday.

Related readings:  Housing prices in Chinese cities to further drop in 2009  Real estate companies report poor performance in 2008  LaSalle expects slow property price correction  Fitch assigns negative outlook for China's housing market

According to Nie Meisheng, president of China Real Estate Chamber of Commerce, the Ministry of Housing and Urban Construction convened a meeting before the Spring Festival, seeking suggestions on a long-term development scheme for the real estate sector.

"The draft plan includes suggestions for affordable housing construction, more policy support on giving out loans to property developers, and more innovative financial products to meet real estate firms' financing demand," Nie told China Daily, adding that should the plan pass, the country's property market may warm up in the second half of the year.

To ensure China's GDP growth stays well above eight percent, the State Council is working on a package of plans to revitalize pillar industries. So far, the government has passed such plans for the textile, steel and auto sectors.