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Inspection tour affirms tightening stance on property
By Tony Tsang and Jason Ching |
August 21, 2012, Tuesday
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AS reported in JRJ.com, the investigations by the property market inspection teams of the State Council have finished, and overall, the inspection teams have more or less affirmed the results and efforts of the property market tightening by the local governments in the 16 Chinese mainland provinces and cities.
Meanwhile, however, the inspection teams have given requests and suggestions on potential problems in four provinces and cities, including Hunan, Hubei and Hebei provinces as well as Jiangmen city in Guangdong Province.
For example, some of the tightening measures in Jiangmen have not been strictly implemented and enforced, while there still exist upward pricing pressure in Hubei and Hunan provinces. With these, Hunan and Hubei provinces were advised to carry out property tightening policies more effectively to curb the rising pressure of home prices.
Jiangmen city was advised to correct its improper implementation of property tightening. While Hebei Province was said to have some problem defining first, second and third home buyers due to lack of networked home ownership information.
Wang Juelin, an official from the Ministry of Housing, said that the inspection teams' job was to: 1) check local governments' implementation of current property tightening policies to deter them from creating more fine-tuning measures that are against central government's tightening will; 2) prevent any slackness in property tightening policies; and 3) to gather an overall view of the property market situation in the first half of 2012 so as to provide decision-making reference for the second half.
Wang also said that property tightening will last for a longer period of time, judging from central government stance.
Also as reported, the inspection teams disclosed that the central government will definitely take action if home prices continue to rise.
Currently the central government still holds a few reserved policies at hand, including: raising secondary home transaction tax, property tax trial program expansion, fine-tuning on pre-sales practice and etc.
The potential new policy is widely speculated to be largely strengthening the implementation of current property tightening measures, together with mild new measures, including holding local officials accountable for failure of controlling home prices.
The most likely follow-up move could be raising secondary home transaction tax, which is relatively easy to launch and should be effective in curbing some investment and speculation housing demand
It is also likely for the central government to put brakes on local government fine-tuning attempts.
Tony Tsang and Jason Ching are research analysts with Deutsche Bank. The article was based on a research note issued on August 13. The opinions expressed are their own.
Meanwhile, however, the inspection teams have given requests and suggestions on potential problems in four provinces and cities, including Hunan, Hubei and Hebei provinces as well as Jiangmen city in Guangdong Province.
For example, some of the tightening measures in Jiangmen have not been strictly implemented and enforced, while there still exist upward pricing pressure in Hubei and Hunan provinces. With these, Hunan and Hubei provinces were advised to carry out property tightening policies more effectively to curb the rising pressure of home prices.
Jiangmen city was advised to correct its improper implementation of property tightening. While Hebei Province was said to have some problem defining first, second and third home buyers due to lack of networked home ownership information.
Wang Juelin, an official from the Ministry of Housing, said that the inspection teams' job was to: 1) check local governments' implementation of current property tightening policies to deter them from creating more fine-tuning measures that are against central government's tightening will; 2) prevent any slackness in property tightening policies; and 3) to gather an overall view of the property market situation in the first half of 2012 so as to provide decision-making reference for the second half.
Wang also said that property tightening will last for a longer period of time, judging from central government stance.
Also as reported, the inspection teams disclosed that the central government will definitely take action if home prices continue to rise.
Currently the central government still holds a few reserved policies at hand, including: raising secondary home transaction tax, property tax trial program expansion, fine-tuning on pre-sales practice and etc.
The potential new policy is widely speculated to be largely strengthening the implementation of current property tightening measures, together with mild new measures, including holding local officials accountable for failure of controlling home prices.
The most likely follow-up move could be raising secondary home transaction tax, which is relatively easy to launch and should be effective in curbing some investment and speculation housing demand
It is also likely for the central government to put brakes on local government fine-tuning attempts.
Tony Tsang and Jason Ching are research analysts with Deutsche Bank. The article was based on a research note issued on August 13. The opinions expressed are their own.
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