Home » Business » Real Estate
Researchers say curbs should continue
By Cao Qian |
December 10, 2011, Saturday
|
Print Edition
Print Edition
CHINA should "stick to" its austerity measures aimed at curbing property speculation despite the fact some positive results have already been achieved, senior government economists said in an article published yesterday in the People's Daily newspaper.
The country is now at a "critical" stage in its fight against the overheated housing market and must firmly maintain its policy stance, according to Ren Xingzhou, Deng Yusong and Xu Wei, researchers at the Development Research Center of the State Council, China's Cabinet.
While speculative demand has been greatly dampened in cities where a home-purchase restriction is enforced and rapid growth in home prices has also been effectively curbed around the country, particularly since the second half of this year as rein-in measures began gradually taking hold, home prices in first-tier and some second-tier cities are still far beyond ordinary people's actual affordability, the researchers said.
Investment demand from individual people who have rather limited channels to hedge against inflation, as well as speculative demand from institutional investors, will probably rebound notably if the government loosens its policies now. That will remain a big threat to the country's real economy which has been suffering a tremendous outflow of capital since 2003 amid rapid development of the real estate industry.
They also predicted that real estate investment will likely grow 20 percent in China next year if the current rein-in measures remain in force, decelerating from an estimated increase of 30 percent this year.
The country is now at a "critical" stage in its fight against the overheated housing market and must firmly maintain its policy stance, according to Ren Xingzhou, Deng Yusong and Xu Wei, researchers at the Development Research Center of the State Council, China's Cabinet.
While speculative demand has been greatly dampened in cities where a home-purchase restriction is enforced and rapid growth in home prices has also been effectively curbed around the country, particularly since the second half of this year as rein-in measures began gradually taking hold, home prices in first-tier and some second-tier cities are still far beyond ordinary people's actual affordability, the researchers said.
Investment demand from individual people who have rather limited channels to hedge against inflation, as well as speculative demand from institutional investors, will probably rebound notably if the government loosens its policies now. That will remain a big threat to the country's real economy which has been suffering a tremendous outflow of capital since 2003 amid rapid development of the real estate industry.
They also predicted that real estate investment will likely grow 20 percent in China next year if the current rein-in measures remain in force, decelerating from an estimated increase of 30 percent this year.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
