Source: CCTV.com

10-20-2008 11:06

The property markets have seen a recent spate in revitalization efforts promoted by real estate developers in eighteen cities, including Shanghai, Xiamen and Hangzhou. In addition, the central government has endorsed local government measures to boost the property markets.

The central government has endorsed local government measures to boost the property markets.(Photo: people.com.cn)

Some recent local government moves to boost the property market have included raising the ceiling on government funding or subsidies for homebuyers, cutting taxes and extending the time limit for property firms to develop land. But some have questioned whether the government should rescue the market. Here's how the government has responded.

Chou Bao Xing, Vice Minister of Housing & Urban-Rural Construction Ministry said "To face the great change in the world economy, each city can issue different policies according to their different features and different property markets. I believe each city government is capable of adopting sensible measures suited to their local conditions."

The vice minister said the central government will take a closer look at the market, though, where some city-level rescue measures may be violating the rules.

Chou Baoxing said "Local governments should be allowed a certain freedom in formulating real estate policies. We are taking a closer look at the markets and how they have been affected by the policies. We will come up with regulated opinions at the proper time. We will continue the good policies and stop the wrong policies. But now is not the time."

Since the fourth quarter of last year, the property market has cooled nationwide, and transactions have fallen significantly.

 

Editor:Xiong Qu