Property crackdown in 30 major cities of China
Among the 30 cities are the country’s four largest or top tier cities
A general view shows a residential area of Pudong district in Shanghai, China. PHOTO: REUTERS
BEIJING:
China said on Thursday it would renew efforts to crack down on property irregularities in 30 major cities from July to end-December, mobilizing powers from seven major Chinese government agencies in a concerted effort to rein in rising prices.
Property prices in China have soared since 2016, prompting the government to roll out tightening measures in more than 100 cities to dampen demand amid bubble fears. But new home prices in May posted their fastest growth in nearly a year even as prices cooled in big cities, suggesting buyers are shifting to smaller cities.
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Policymakers have been careful not to tap on the brakes too hard, as real estate remains a major driver of the economy. Growth in the world’s second-largest economy is at risk of slowing as the authorities try to tame rapid domestic credit growth at a time when trade tensions are causing worries for the economic outlook.
The crackdown would be carried out by government entities including the housing ministry and the Ministry of Public Security, and the banking and insurance regulators, according to a notice posted on the housing ministry’s website.
They would focus on stemming speculation, cracking down on illegal agencies and developers, and fake advertisements.
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Among the 30 cities that will be scrutinized are the country’s four largest or top tier cities, including Beijing and Shanghai, and tier 2 provincial capitals such as Wuhan and Chengdu, and also smaller cities, such as Yichang and Foshan.
The notice said targeted irregularities include manipulating prices, deliberately holding off sales, illegally providing loans for down-payment and publishing false price information that mislead buyers.
China said on Thursday it would renew efforts to crack down on property irregularities in 30 major cities from July to end-December, mobilizing powers from seven major Chinese government agencies in a concerted effort to rein in rising prices.
Property prices in China have soared since 2016, prompting the government to roll out tightening measures in more than 100 cities to dampen demand amid bubble fears. But new home prices in May posted their fastest growth in nearly a year even as prices cooled in big cities, suggesting buyers are shifting to smaller cities.
Chinese cities move to ease residency curbs, fuel property demand
Policymakers have been careful not to tap on the brakes too hard, as real estate remains a major driver of the economy. Growth in the world’s second-largest economy is at risk of slowing as the authorities try to tame rapid domestic credit growth at a time when trade tensions are causing worries for the economic outlook.
The crackdown would be carried out by government entities including the housing ministry and the Ministry of Public Security, and the banking and insurance regulators, according to a notice posted on the housing ministry’s website.
They would focus on stemming speculation, cracking down on illegal agencies and developers, and fake advertisements.
US-China trade tension dominates IMF gathering
Among the 30 cities that will be scrutinized are the country’s four largest or top tier cities, including Beijing and Shanghai, and tier 2 provincial capitals such as Wuhan and Chengdu, and also smaller cities, such as Yichang and Foshan.
The notice said targeted irregularities include manipulating prices, deliberately holding off sales, illegally providing loans for down-payment and publishing false price information that mislead buyers.