The story appears on

Page A3

March 9, 2010

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Economy

Home-price issue seen as long term

CHINA would face considerable pressure caused by housing price rises in the next 20 years as hefty demand persisted amid accelerated urbanization and industrialization, a minister said in Beijing yesterday.

"Demand is big, while land supply is limited. So pressures caused by rising prices are still mounting," said Jiang Weixin, minister of housing and urban-rural development at a press conference held on the sidelines of the annual session of the National People's Congress, the country's top legislature.

However, the central government was strongly determined to curb runaway housing prices, he said.

Questioned about hefty land-transferring fees which have become a main source of revenue for local governments, Jiang said while this was true, soaring retail prices also added pressure and required more efforts by local governments to maintain social stability. Housing prices, if too high or rising too fast, will trigger social instability, he said.

Driven by record bank lending and favorable tax breaks, China saw a sharp residential property price rise nationwide during the past year, triggering heated public complaints and fears of possible asset bubbles.

China's home prices in 70 large and medium cities, considered a housing price trend barometer, climbed 9.5 percent in January, from a year earlier, the fastest growth in 19 months.

Premier Wen Jiabao on Friday reiterated his determination to curb the excessive growth of home prices in major cities while satisfying people's basic needs for housing as the annual session opened.

A total of 63.2 billion yuan (US$9.25 billion) would be spent by the central government on housing for low-income families in 2010, an increase of 8.1 billion yuan, or 14.7 percent over last year, Wen said.

China would also build 3 million affordable houses and renovate 2.8 million shanty homes, he said.

Recently, China's statistics chief admitted the method and system of calculating property prices had problems, and promised new measures to correct them.

The pledge came from Ma Jiantang, director of the National Bureau of Statistics, in a seminar attended by government officials, property experts and real estate developers.

The NBS 2009 National Economic and Social Development Statistics Bulletin, issued on February 25, said housing prices in the 70 cities rose 1.5 percent in 2009 from 2008.

The figure, the lowest level for nine years, has been widely questioned by the media and public.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend