Property market to face greater regulation

The Minister of Housing and Urban-Rural Construction, Jiang Weixin, has said that property prices in China will have to be controlled. Addressing a housing conference on Friday, Jiang said that credit restrictions on second homes will be tightened, and measures will be taken to develop rental housing for low- and middle-income residents.

According to the latest figures, housing prices in China's 70 major cities rose 5.7 percent from last year, with double-digit growth recorded in some cities. Jiang said that four main reasons accounted for the property price hikes.

Jiang Weixin, Minister of Housing and Urban-rural Construction, said, "First, we think the surge in property prices is mainly due to the insufficient supply of housing and land. Second, speculation has driven prices up. Third is the hoarding of land and properties by some developers. And fourth, the development of social welfare properties has been slow."

Jiang Weixin said the government will take all necessary measures to maintain a healthy property sector next year by offering more commercial properties, as well as more housing for low- and middle-income families.

Jiang said, "Macro control of the property market next year will be based on an increased supply of commercial housing, off-setting speculation on properties and improving supervision. The key point is to restrain the fast growth of housing prices. More small units and land will be supplied, and credit control on second homes will be more strict. Meanwhile, more effort will be taken to develop public housing for rent, as well as affordable housing, especially in cities where housing prices have been growing the fastest. Also, pilot programs will be introduced to tap social funds to build such housing."

49-year-old Liu Wanqiao lives with his family in impoverished circumstances. To help them with their housing problems, the local government now provides a subsidy of about 800 yuan a month to rent a 65-square-meter apartment.

Liu Wanqiao, resident, said, "With the money, I can improve our lives a bit."

Jiang said that the housing problems faced by some 3.8 million low-income families in China's cities will be addressed next year, and subsidies will be offered for the construction of public housing in the country's western regions.