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More measures on real estate outlined

More measures on real estate outlined
0 CommentsPrint E-mail CCTV, April 23, 2010
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The Ministry of Housing and Urban-Rural Construction has outlined the government's latest measures to rein in skyrocketing housing prices.

An official from the Ministry of Housing and Urban-Rural Construction has attributed the recent, rapid rise of housing prices to speculation, rich liquidity and disparities between demand and supply.

Zhang Xiaohong, an official of The Ministry of Housing and Urban-Rural Construction, said, "If this trend is not curbed, housing prices may continue their irrational rise. It is necessary to take stricter and more powerful measures to curb this rise, and maintain the real estate market's stable and healthy development."

The government's latest control measures aim to crack down on speculation and increase land supply. One core measure adopts financial, taxation and administrative changes.

Zhang said, "The government will take stricter and more distinct loan policies. That will raise the down payment ratio and loan interest rates. For areas where house prices are high and land supply is tight, commercial banks can suspend issuing loans to those who buy third or subsequent houses. These two measures will target speculation. People who buy houses for their own residence can enjoy more favorable policies."

Zhang added that local governments will be responsible for ensuring the latest round of measures are fully implemented.

 

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