Date
16 October 2017
Shanghai needs to strengthen housing regulations to cool the market, the city's Communist Party chief says. Photo: Bloomberg
Shanghai needs to strengthen housing regulations to cool the market, the city's Communist Party chief says. Photo: Bloomberg

Shanghai property market ‘overheated’, says top official

Shanghai’s property market has become overheated following a recent surge in home prices, the city’s Communist Party chief said, outlining the need for stronger regulations on the sector. 

“Irrational and overheated sentiments have emerged in the Shanghai real estate market, and these sentiments have raised home prices,” Han Zheng said at briefing in Beijing Sunday, Bloomberg News reported.

Speaking on the sidelines of China’s parliament meeting, Han said that Shanghai will beef up housing regulations, according to the report.

The official did not give details or elaborate on potential new tightening measures, saying only that regulations should be “scientific as housing is a specialty commodity”.

Meanwhile, Guangdong governor said at a separate briefing Sunday that his province is drafting a plan to allow some large state-owned enterprises to purchase homes to help reduce inventory.

There have been diverging trends for property markets in China’s largest cities from other regions.

According to official data tracking home prices in 70 large cities, new-home prices climbed month-on-month in 38 cities in January, compared with gains for 39 in December. At the same time, 24 cities saw declines.

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FL/RC

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