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China remains committed to home market regulation

2018-10-30 16:42

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Recent data on home sales and prices show the government is unwavering in its property market regulation despite concerns about a policy loosening amid rising downward pressures on the broader economy.

New and existing home prices in four metropolises including Beijing and Shanghai dropped 0.1 percent from a month ago in September, while second and third-tier cities registered slower price growth.

The signs of cooling in the property market were attributed to rigorous home purchase restrictions that kicked in more than two years ago to curb speculation and reduce asset bubbles.

Analysts said home price spikes have been contained and the property sector has largely remained tame.

Policymakers have put greater emphasis on a healthy property sector and promised differentiated regulatory approaches and a long-term mechanism to ensure market stability. Local authorities rolled out a total of around 200 new curb measures in the first half of the year, with more planned for a later date.

More efforts have been taken to speed up affordable housing projects and foster the home rental market, and local officials are now acting responsibly to ensure a stable home market. Property tax legislation is also underway.

The concrete action means China's commitment to stable home prices will not change and any ideas that high home prices will be allowed should be dismissed.

Increasing economic headwinds will not lead to any policy relaxation as China has steered to innovation-driven development and relied more on the real economy. With the long-term mechanism still ongoing, the established policy framework will not be loosened.

As long as the central government's call that "housing is for living in, not for speculation" is strictly implemented, there will be no ground for unreasonable home price hikes.
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