Home » Business » Real Estate
Measure seeks right pricing
By Cao Qian |
March 23, 2011, Wednesday
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Print Edition
Print Edition
REAL estate developers, which will have to ensure that every single unit of new properties sold is priced properly, will not be allowed to charge buyers additional fees unless they have been informed in advance of the extra costs, the National Development and Reform Commission said yesterday on its website.
The latest measure will become effective from May 1 and is aimed at curbing irregularities such as random pricing and cheating on prices during new property sales, according to a NDRC statement which cited a notice it issued on March 16.
From May 1 new property units must be sold at a price either equal to, or lower than, what developers have earlier registered with local industry watchdogs and that buyers should be told beforehand of any property purchase-related charges and property management fees, the country's top planning body said.
Developers planning a price increase for their properties need to re-register with the watchdogs, according to the statement.
"This is of course a positive effort made by the central government although the requirement may not have an immediate or direct impact on real estate prices," said Song Huiyong, a research director at Shanghai Centaline Property Consultants Ltd. "Its implementation will likely put real estate developers under increased pressure and, at the same time, enable buyers access to more transparent price information."
The new requirement followed a notice issued late last year that developers are not allowed to hoard their sale plans deliberately for higher profits and must sell their developments at prices which meet strictly with their earlier proposals.
But doubts were voiced over the new measure's effectiveness.
"... the central government's statement didn't clarify where developers should disclose the 'one-unit, one price' information as it makes a difference whether they release it online or in their own sales offices," said Lu Qilin, research head at Shanghai Deovolente Realty. "Moreover, if a 'wide range' (in prices) is still allowed, the new policy will have little impact on developers."
The latest measure will become effective from May 1 and is aimed at curbing irregularities such as random pricing and cheating on prices during new property sales, according to a NDRC statement which cited a notice it issued on March 16.
From May 1 new property units must be sold at a price either equal to, or lower than, what developers have earlier registered with local industry watchdogs and that buyers should be told beforehand of any property purchase-related charges and property management fees, the country's top planning body said.
Developers planning a price increase for their properties need to re-register with the watchdogs, according to the statement.
"This is of course a positive effort made by the central government although the requirement may not have an immediate or direct impact on real estate prices," said Song Huiyong, a research director at Shanghai Centaline Property Consultants Ltd. "Its implementation will likely put real estate developers under increased pressure and, at the same time, enable buyers access to more transparent price information."
The new requirement followed a notice issued late last year that developers are not allowed to hoard their sale plans deliberately for higher profits and must sell their developments at prices which meet strictly with their earlier proposals.
But doubts were voiced over the new measure's effectiveness.
"... the central government's statement didn't clarify where developers should disclose the 'one-unit, one price' information as it makes a difference whether they release it online or in their own sales offices," said Lu Qilin, research head at Shanghai Deovolente Realty. "Moreover, if a 'wide range' (in prices) is still allowed, the new policy will have little impact on developers."
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