Date
21 September 2017
Chinese cities have the freedom to decide their property policies based on local conditions, says a government economist. Photo: Bloomberg
Chinese cities have the freedom to decide their property policies based on local conditions, says a government economist. Photo: Bloomberg

China official says cities free to decide their housing policies

Municipal governments can decide on their own whether to ease or lift their home-purchase curbs, based on the local market conditions, China Business News cited Feng Jun, chief economist at the Ministry of Housing and Urban-Rural Development, as saying. 

While some cities that have restrictions are now facing oversupply pressure, Feng said he is not aware of any city having actually made a public announcement on canceling the curbs.

The central government’s macroeconomic control policy aims to protect consumer interests while curbing excessive investment, the official was quoted as saying at a news conference Wednesday.

Feng said the current slide in home prices should not be seen as an inflection point that heralds a falling housing market. Most market indicators, despite indicating a slowdown, still show growth, he said, adding that only a few indicators have shown declines, including those related to housing under construction, area of sales and contracted sales volume.

Meanwhile, the government has decided to speed up shantytown renovation by providing more financing support. Feng said funds will come from five major sources — coffers of local governments, low interest rate bank loans, corporate bonds, private investment, and reallocation of surplus.

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