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Curbing property prices a 'major task'
(Shenzhen Daily/Agencies)
Updated: 2005-04-27 14:57

Bringing China's skyrocketing real estate prices under control was a "major task," a top Chinese economic official said, signaling authorities would persist in their market control measures.

Vice Premier Zeng Peiyan urged local officials to do more to stabilize housing prices following double-digit increases in major cities such as Shanghai and Beijing.

"Controlling the rise in property prices is a major task in our economic policy for this year," Zeng said.

Zeng's comment follows reports that credit-tightening measures in Shanghai have brought housing prices down somewhat in recent weeks, though real estate agents say demand for prime property in the city center remains strong.

Shanghai recently enacted a new rule requiring home owners to pay off their mortgages before selling property, extended the waiting period between sale and transfer of property to one month from the previous seven days and decreed a 5.55 percent capital gains tax on sales of property within a year of purchase.

The changes reflect worries that property prices have soared unmanageably high, risking financial problems and pricing many residents of this city of more than 20 million out of the market.

China began tightening access to credit for property development more than a year ago. It has increased interest rates, advised banks to demand bigger down payments and restricted the conversion of farmland for real estate development.

 



 
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