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Shanghai keeping curbs on property market
By Cao Qian |
December 21, 2011, Wednesday
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Print Edition
Print Edition
Shanghai is to further strengthen efforts to rein in housing speculation next year and continue to enforce home-purchase restrictions, the local government said yesterday.
It is the latest in a number of Chinese cities to vow to stick to property tightening measures and extend restrictions on buyers which are due to expire at the end of the year.
During last week's annual Central Economic Work Conference, China's top leaders vowed to maintain tightening in the property sector, including home purchase restrictions, curbs on onshore and offshore fundraising options for developers and higher downpayments for multiple home buyers.
China will stick to property tightening policies, push home prices back to a reasonable level, and speed up construction of ordinary houses to increase supply, the conference concluded as it laid out its 2012 blueprint for the country.
"The central government has repeatedly made it very clear over the past weeks that rein-in measures to curb housing speculation should be continuously implemented so the latest announcement by the Shanghai government came as no surprise," said Sky Xue, an analyst with China Real Estate Information Corporation. "In the short term, home prices will for sure continue to go through a downward trend."
Major factors that might be counted on to help the residential market regain some strength in the short term would probably include cuts in the reserve requirement ratio or interest rates as the central government is "fine tuning" its monetary policy to sustain economic growth amid expectations of cooler inflation, Xue said.
"The anticipated loosening of monetary policies would only likely prevent home prices from further decreases while a major rebound in residential price would be rather impossible until the overall economy is back on track for strong growth," he said.
China has intensified property tightening measures this year with limits on mortgages and restrictions on home purchases in about 40 cities. It also has a target of building 10 million affordable housing units.
The latest data released by the country's top statistics body showed that the national campaign to combat soaring house prices was now at a critical stage.
Last month, 49 out of 70 Chinese cities reported monthly falls in new home prices, compared to 17 in September and 34 in October, the National Bureau of Statistics said.
In Shanghai, prices for new homes shed 0.4 percent month-on-month in November, compared to October's dip of 0.3 percent.
"The correction has neither reached the government's satisfaction nor the extent seen last time," Hui Jianqiang, research head of property consultancy E-House China, told Reuters recently, referring to a brief but sharp property market downturn during the 2008-2009 global financial crisis.
It is the latest in a number of Chinese cities to vow to stick to property tightening measures and extend restrictions on buyers which are due to expire at the end of the year.
During last week's annual Central Economic Work Conference, China's top leaders vowed to maintain tightening in the property sector, including home purchase restrictions, curbs on onshore and offshore fundraising options for developers and higher downpayments for multiple home buyers.
China will stick to property tightening policies, push home prices back to a reasonable level, and speed up construction of ordinary houses to increase supply, the conference concluded as it laid out its 2012 blueprint for the country.
"The central government has repeatedly made it very clear over the past weeks that rein-in measures to curb housing speculation should be continuously implemented so the latest announcement by the Shanghai government came as no surprise," said Sky Xue, an analyst with China Real Estate Information Corporation. "In the short term, home prices will for sure continue to go through a downward trend."
Major factors that might be counted on to help the residential market regain some strength in the short term would probably include cuts in the reserve requirement ratio or interest rates as the central government is "fine tuning" its monetary policy to sustain economic growth amid expectations of cooler inflation, Xue said.
"The anticipated loosening of monetary policies would only likely prevent home prices from further decreases while a major rebound in residential price would be rather impossible until the overall economy is back on track for strong growth," he said.
China has intensified property tightening measures this year with limits on mortgages and restrictions on home purchases in about 40 cities. It also has a target of building 10 million affordable housing units.
The latest data released by the country's top statistics body showed that the national campaign to combat soaring house prices was now at a critical stage.
Last month, 49 out of 70 Chinese cities reported monthly falls in new home prices, compared to 17 in September and 34 in October, the National Bureau of Statistics said.
In Shanghai, prices for new homes shed 0.4 percent month-on-month in November, compared to October's dip of 0.3 percent.
"The correction has neither reached the government's satisfaction nor the extent seen last time," Hui Jianqiang, research head of property consultancy E-House China, told Reuters recently, referring to a brief but sharp property market downturn during the 2008-2009 global financial crisis.
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