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Premier promises action against soaring housing prices

0 CommentsPrint E-mail Xinhua, December 27, 2009
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Chinese Premier Wen Jiabao said Sunday the government would maintain order in China's property market while cracking down on illegal activities that had driven up housing prices.

"We will crack down on illegal activities, including hoarding of land, driving up housing prices and delaying sales for bigger profits," he said in an exclusive interview with Xinhua.

Wen was answering a question on China's soaring home prices. "I have noticed complaints on the Internet, sometimes even harsh criticisms, about housing prices," he said.

"As the property market is recovering rapidly this year, housing prices in some cities are rising too fast, which deserves the 'great attention' of the central government," he said.

Wen said the government would stabilize real estate prices with economic tools of taxes, interest rates and land policies.

"The government will expand construction of housing projects for low-income families and speed up the renovation of 'shanty towns,' providing them with preferential funding, land and tax policies," he said.

Wen said the government would also increase supply of smaller medium and low price homes, continue to support residential consumption for improved housing, and curb speculation to allow the healthy development of the real estate sector.

"China's situation has decided that our homes should be safely built, economical, suitable for living and land-efficient."

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