Wednesday, October 22, 2008

China Wants To Stabilise Property Market

Source : The Business Times, October 21, 2008

(BEIJING) China endorsed local measures to stabilise the real estate market and will work out a nationwide policy based on their results, state media reported yesterday.

More than a dozen cities, including Shanghai, Hangzhou and Nanjing, rolled out new measures to encourage house purchases, such as offering cash subsidies for home buyers and lowering taxes and fees for developers.

'Local governments should be allowed certain freedom in formulating real estate policies,' the China Daily quoted Qiu Baoxing, vice-minister of housing and urban-rural planning, said at a forum in Shenzhen.

'We will issue standard opinions at an appropriate time on which of these measures should be kept and which should be ended,' Xinhua news agency quoted him as saying.

A State Council meeting led by Premier Wen Jiabao on Friday concluded that China should build more affordable housing and reduce taxes on residential property transactions, state media reported.

Real estate investment, the second-largest contributor to the country's urban fixed-assets investment, dropped in recent months due to sluggish sales, falling property prices and developers' funding difficulties. -- Reuters

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