BEIJING: China plans to stick to its tight property sector policies and a nationwide rebound in home prices remains unlikely, a senior official at the housing ministry said in remarks published by state media on Sunday.
The comments underscore Beijing’s determination to keep a lid on rising home prices, a source of social discontent, especially in the run-up to a once-a-decade leadership transition this year.
To curb price rises, Beijing is urging local authorities to increase housing supply and to strictly implement a policy aimed at restricting home purchases, said the People’s Daily, the ruling Communist Party’s official newspaper. It quoted an unnamed official at the Ministry of Housing and Urban-Rural Development.
“With more affordable housing projects put into operation and market expectations kept stable, the conditions do not exist for a full-scale rebound in house prices,” said the official.
The comments came amid new concerns that a new round of property inflation was in the offing, with data showing a pick-up in housing sales as well as an increase in property prices following eight consecutive monthly declines.
Latest figures showed that Chinese house prices rose 0.1 percent in August from July, extending a modest price increase into a second straight month.
Revenues from property sales in the country rose for the third month in a row in August from a year earlier, reinforcing signs of a recovery in the sector. Continue reading