Mon, Jul 09, 2012 - Page 15 News List

Beijing tightens property controls

IRON FIST:The Chinese premier made explicit the government’s determination to keep regulating real-estate as new home prices rose last month for the first time in 10 months

Bloomberg

The government must “promote the study and implementation of changes to the property-tax mechanism, and to speed up the establishment of a comprehensive long-term mechanism and policy framework for controlling the property market,” Xinhua cited Wen as saying.

Home prices fell in a record 54 of 70 cities tracked by the government in May from a year ago, the government said on June 18, as developers cut prices to boost transactions. Even so, sales rebounded for the first time this year, rising 19 percent from April, the data showed.

About 30 cities have issued “fine-tuning” policies since the second half of last year to revive plunging sales, according to Centaline Property Agency Ltd (中原地產), the nation’s biggest real-estate brokerage.

Prices of new homes last month rose for the first time in 10 months, according to a survey of 100 cities by SouFun released on Monday last week. Buying sentiment has improved after monetary policy easing this year and some developers have called off discounts or even raised prices as sales picked up, it said in a statement.

“The worst is probably over,” Standard Chartered Plc economists Stephen Green and Lan Shen wrote in a June 28 note.

Data suggest “buyers are coming back into the market to take advantage of discounted prices offered by developers” and apartment sales volumes are improving in the top 25 cities, they said.

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