China moves to cool property prices

| March 9, 2011 | 0 Comments
China moves to cool property prices

China‘s property prices have remained stubbornly high despite several Government initiatives to avoid a property bubble.

The Government recently announced plans to introduce a property tax. Shanghai Mayor Han Zheng said it is preparing for the “trial reform on property tax as required by the central Government”.

It has also made it more expensive to buy second homes, by lifting the minimum down payment.

However, today the Government has said it will build 10 million low-cost homes this year, costing $200 billion (£124 billion) as it has become very difficult for millions of Chinese across cities to purchase even the smallest apartment due to soaring prices.

Deputy Housing Minister Qi Ji comments: “One of the key points we are trying to control, is to postpone purchases by those consumers who don’t need to settle down and buy houses urgently.”

In January, house prices rose in 68 out of 70 cities that the Government is closely monitoring.

Property transactions have also surged, with total sales for last year 10.1% higher than 2009.

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