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Measures to curb house prices set to continue
By Cherry Cao |
December 15, 2011, Thursday
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Print Edition
Print Edition
CHINA is sticking to its commitment to bring down home prices to a reasonable level next year as part of efforts to ensure healthy development of the real estate industry.
The government will unswervingly implement austerity measures aimed at curbing housing speculation and further accelerate the construction of mass market apartments so as to increase overall supply, according to a statement after the annual economic planning meeting.
"With rein-in measures remaining strictly enforced, more real estate developers, as well as individual owners, are expected to join price-cut campaigns over the next 12 months, which will help further consolidate a tipping point in the country's property market," said Song Huiyong, research director at Shanghai Centaline Property Consultants Ltd. "However, a maximum discount of 30 percent should be expected while a rebound in transaction volume might be rather mild."
A raft of rein-in measures introduced earlier this year - mainly increased downpayments and mortgage rates as well as home-purchase restrictions - has already curbed rising prices, government statistics showed.
In October, cities reporting a fall in new home prices outnumbered those registering growth, the National Bureau of Statistics said.
New home prices, excluding government-funded affordable housing, fell in 34 out of 70 cities across the country. They remained unchanged in 20 cities and gained in the remaining 16. That compared with a fall in 17 cities and an increase in 24 cities in September.
In Shanghai, Beijing, Guangzhou and Shenzhen, the four cities where rein-in measures have been rigorously enforced, new home prices finally fell in October from a month earlier - by between 0.1 and 0.3 percent - after remaining unchanged for three months.
"There will be further room for price decreases next year as far as those measures remain vigorously enforced and the transaction volume of homes will likely remain largely stable or climb a little bit from this year," said Lu Qilin, a researcher at Shanghai Deovolente Realty Co.
"However, some minor adjustment might be needed in some areas in order to assure a soft landing of the housing market or it could be harmful to economic growth," Lu said.
A joint report by Knight Frank and Beijing Holdways Information & Technology Co said residential transaction volume in China is expected to stay low in 2012, and prices could face mild corrections.
The government will unswervingly implement austerity measures aimed at curbing housing speculation and further accelerate the construction of mass market apartments so as to increase overall supply, according to a statement after the annual economic planning meeting.
"With rein-in measures remaining strictly enforced, more real estate developers, as well as individual owners, are expected to join price-cut campaigns over the next 12 months, which will help further consolidate a tipping point in the country's property market," said Song Huiyong, research director at Shanghai Centaline Property Consultants Ltd. "However, a maximum discount of 30 percent should be expected while a rebound in transaction volume might be rather mild."
A raft of rein-in measures introduced earlier this year - mainly increased downpayments and mortgage rates as well as home-purchase restrictions - has already curbed rising prices, government statistics showed.
In October, cities reporting a fall in new home prices outnumbered those registering growth, the National Bureau of Statistics said.
New home prices, excluding government-funded affordable housing, fell in 34 out of 70 cities across the country. They remained unchanged in 20 cities and gained in the remaining 16. That compared with a fall in 17 cities and an increase in 24 cities in September.
In Shanghai, Beijing, Guangzhou and Shenzhen, the four cities where rein-in measures have been rigorously enforced, new home prices finally fell in October from a month earlier - by between 0.1 and 0.3 percent - after remaining unchanged for three months.
"There will be further room for price decreases next year as far as those measures remain vigorously enforced and the transaction volume of homes will likely remain largely stable or climb a little bit from this year," said Lu Qilin, a researcher at Shanghai Deovolente Realty Co.
"However, some minor adjustment might be needed in some areas in order to assure a soft landing of the housing market or it could be harmful to economic growth," Lu said.
A joint report by Knight Frank and Beijing Holdways Information & Technology Co said residential transaction volume in China is expected to stay low in 2012, and prices could face mild corrections.
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