Wuhu justifies its housing subsidies policy
Source: Xinhua |
February 12, 2012, Sunday
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Print Edition
Print Edition
AN east China city that has sparked attention with housing subsidies has said the policies are not a sign controls on the property market will be loosened.
The government of Wuhu, Anhui Province, which has a population of 1.5 million, announced on Thursday it will grant subsidies and deed tax exemptions to first-home purchasers this year.
The measures triggered speculation that authorities may lift curbs on the real estate sector.
However, government officials in Wuhu said on Friday that the policies are intended to help people with low incomes afford a home and attract talented people to work in Wuhu.
"The essence of these measures is to curb the property market, clamp down on speculation and satisfy the home-buying demands of those with low incomes and new residents, as well as give a boost to affordable housing projects," said Hong Jianping, the city's deputy major.
Under Wuhu's new policies, the local government will offer subsidies ranging from 50 yuan (US$7.9) to 150 yuan per square meter for purchases of first homes no larger than 90 square meters.
Home buyers with more extensive educational backgrounds or professional certificates are entitled higher subsidies, a policy the government has cited as a method to attract more talented workers.
But analysts have argued that Wuhu's subsiding policies are intended to bail out the sagging property market, warning more local governments may follow suit with similar policies.
Housing prices in Wuhu dipped for the eighth straight month in January, with the average price standing at 5,567 yuan per square meter, down 5.68 percent from a year earlier, according to data from the China Index Academy (CIA), a leading property research institute.
"Wuhu is the first city in China to waive deed taxes and grant housing subsidies. It is really hard to convince people that they're not trying to rescue the market," Zhang Dawei, chief analyst at Centaline Property, was quoted as saying by the 21st Century Business Herald.
Since 2010, China has introduced a series of tightening measures to cool down the runaway property market, including bank lending restrictions, a ban on third-home purchases and trial property taxes in the cities of Chongqing and Shanghai.
The policies will be maintained this year to bring housing prices to a reasonable level, authorities said following China's central economic work conference in December.
The government of Wuhu, Anhui Province, which has a population of 1.5 million, announced on Thursday it will grant subsidies and deed tax exemptions to first-home purchasers this year.
The measures triggered speculation that authorities may lift curbs on the real estate sector.
However, government officials in Wuhu said on Friday that the policies are intended to help people with low incomes afford a home and attract talented people to work in Wuhu.
"The essence of these measures is to curb the property market, clamp down on speculation and satisfy the home-buying demands of those with low incomes and new residents, as well as give a boost to affordable housing projects," said Hong Jianping, the city's deputy major.
Under Wuhu's new policies, the local government will offer subsidies ranging from 50 yuan (US$7.9) to 150 yuan per square meter for purchases of first homes no larger than 90 square meters.
Home buyers with more extensive educational backgrounds or professional certificates are entitled higher subsidies, a policy the government has cited as a method to attract more talented workers.
But analysts have argued that Wuhu's subsiding policies are intended to bail out the sagging property market, warning more local governments may follow suit with similar policies.
Housing prices in Wuhu dipped for the eighth straight month in January, with the average price standing at 5,567 yuan per square meter, down 5.68 percent from a year earlier, according to data from the China Index Academy (CIA), a leading property research institute.
"Wuhu is the first city in China to waive deed taxes and grant housing subsidies. It is really hard to convince people that they're not trying to rescue the market," Zhang Dawei, chief analyst at Centaline Property, was quoted as saying by the 21st Century Business Herald.
Since 2010, China has introduced a series of tightening measures to cool down the runaway property market, including bank lending restrictions, a ban on third-home purchases and trial property taxes in the cities of Chongqing and Shanghai.
The policies will be maintained this year to bring housing prices to a reasonable level, authorities said following China's central economic work conference in December.
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