Beijing will not relax property purchase limits anytime soon as China’s capital seeks to restructure its economic growth engine, Beijing News reported on Monday.
“We won’t easily resort to a new property policy,” city mayor Wang Anshun was quoted as saying. “And easing home purchase restrictions would hamper our efforts to restructure the economy and hinder the city’s sustainable development.”
Local authorities have managed to balance steady economic growth and a healthy housing market. Beijing’s economy grew 7.2 percent in the first half of this year, despite a slowdown in the real estate sector.
The city’s property sector accounts for 6 percent of the local GDP, down 0.8 percentage point from a year earlier, official data showed.
The sector used to be a major contributor to the city’s fiscal revenue contributor, accounting for nearly 20 percent of its tax income.
However, things have changed after the government adopted a package of measures aimed at restructuring the growth engine of the local economy in 2010.
In the first six months of 2014, fiscal revenue generated from sector grew 9.6 percent year on year to 41.1 billion yuan (US$6.64 billion), but the growth rate has fallen 33.8 percentage points from the same period of last year.
Beijing’s commercial housing sales dropped 34.8 percent to 5.36 million square meters in the first half from a year ago.
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