Source: CCTV.com
12-22-2008 08:57
Special Report: Global Financial CrisisThe State Council has issued a guideline for the healthy development of the property market. The guideline encourages property developers to actively deal with market fluctuation.
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| The State Council has issued a guideline for the healthy development of the property market. |
According to the guideline, which was issued on Sunday, property developers should take active action to deal with market demand. And they should set reasonable prices to boost house sales. The local government should supervise the property project financial settlement and wage distribution to migrant workers at the end of the year.
Based on property developers' financial demand, commercial banks should give more credit support to middle and low priced, as well as middle and small apartment housing projects.
Some residents are worried the policies will stimulate the market, encourage speculation and increase house prices. But insiders say that a large price fluctuation is unlikely.
Fan Weiguo, Analyst of Shanghai No. 1 Real Estate said "It is not the case that supply can not meet demand. So there is almost no possibility of large price increase now. It is possible that with the help of policies, prices can be stabilized. "
The guideline also encourages consumer housing purchases. It stipulates that residences may be sold free of business taxes after just two years, rather than five. And taxes will only be levied on the profit, not the total price.
In addition, the guideline states that measures should be taken to address the difficulties faced by low-income urban families.
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Editor:Xiong Qu
