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High times: City home costs spiral nationwide
By Cao Qian |
January 15, 2010, Friday
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Print Edition
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CHINA'S urban property prices rose in December by the most in 18 months, driven by a supply shortage and growing speculation.
Housing prices in 70 major cities on the mainland jumped 7.8 percent last month, the biggest year-on-year increase since July 2008, the National Development and Reform Commission, the country's top economic planner, said yesterday on its Website.
The December lift was the seventh gain in a row since June, when property prices in the 70 cities monitored started to register growth following six straight months of decline.
On a month-to-month basis, property prices in December advanced 1.5 percent nationwide, the 10th consecutive gain.
Across the country, prices of new and existing homes jumped 9.1 percent and 6.8 percent year on year in December, accelerating from the growth of 6.2 percent and 5.5 percent in November.
Growing attention
In Shanghai, property prices rose 7.4 percent last month from a year earlier and on a month-over-month basis, a 1.3 percent gain was recorded, the commission said.
The "overly rapid" growth of property prices, particularly in some major cities, has been receiving growing attention from the central government.
In its latest initiative, the State Council, China's Cabinet, required all government departments, both at state and local levels, to use stricter scrutiny over the real estate market and to curb speculative investments.
The General Office of the State Council said in a notice released last weekend that greater efforts should be made to increase the supply of low-cost and ordinary housing.
It also urged restraint on home purchases for investment and speculation.
Interest varied
"We want to offer affordable housing to as many people as we can," Qi Ji, deputy head of the Ministry of Housing and Urban-Rural Development, told a press conference in Beijing on Wednesday.
On the mortgage side, the central government iterated on Sunday that a 40-percent down-payment should be strictly enforced for second home loans and that different interest rates should be applied according to circumstances.
Mu Huaipeng, a People's Bank of China official, said commercial banks were now encouraged to support buyers who needed loans to buy homes for their own living, rather than for investment or speculation.
In December, the State Council announced that individuals who sold their homes less than five years after purchase would be liable for a 5.55-percent business tax, effective this month.
The previous lock-up period was two years.
Housing prices in 70 major cities on the mainland jumped 7.8 percent last month, the biggest year-on-year increase since July 2008, the National Development and Reform Commission, the country's top economic planner, said yesterday on its Website.
The December lift was the seventh gain in a row since June, when property prices in the 70 cities monitored started to register growth following six straight months of decline.
On a month-to-month basis, property prices in December advanced 1.5 percent nationwide, the 10th consecutive gain.
Across the country, prices of new and existing homes jumped 9.1 percent and 6.8 percent year on year in December, accelerating from the growth of 6.2 percent and 5.5 percent in November.
Growing attention
In Shanghai, property prices rose 7.4 percent last month from a year earlier and on a month-over-month basis, a 1.3 percent gain was recorded, the commission said.
The "overly rapid" growth of property prices, particularly in some major cities, has been receiving growing attention from the central government.
In its latest initiative, the State Council, China's Cabinet, required all government departments, both at state and local levels, to use stricter scrutiny over the real estate market and to curb speculative investments.
The General Office of the State Council said in a notice released last weekend that greater efforts should be made to increase the supply of low-cost and ordinary housing.
It also urged restraint on home purchases for investment and speculation.
Interest varied
"We want to offer affordable housing to as many people as we can," Qi Ji, deputy head of the Ministry of Housing and Urban-Rural Development, told a press conference in Beijing on Wednesday.
On the mortgage side, the central government iterated on Sunday that a 40-percent down-payment should be strictly enforced for second home loans and that different interest rates should be applied according to circumstances.
Mu Huaipeng, a People's Bank of China official, said commercial banks were now encouraged to support buyers who needed loans to buy homes for their own living, rather than for investment or speculation.
In December, the State Council announced that individuals who sold their homes less than five years after purchase would be liable for a 5.55-percent business tax, effective this month.
The previous lock-up period was two years.
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