China Intensifies Real Estate Controls as Home Prices Climb

iFeng: 调控力度加大防止房价明显过快上涨

From a month-on-month perspective, the sales prices of new and second-hand residential houses in first-tier cities rose by 0.3% and 0.2%, respectively; the sales prices of new-commercial and second-hand houses in second-tier cities rose by 0.9% and 0.8% respectively; and the sales prices of newly-built commercial houses and second-hand houses in third-tier cities were increased. It rose 0.7% and 0.6% respectively.

Liu Jianwei said that in May, the sales prices of commercial housing in 15 hot-spot cities were mixed. Of the 15 hot-spot cities, the sales price of newly-built commercial homes fell in 5 compared to the previous month, with 1 flat and 9 rising; 8 saw a year-on-year decline and 7 rose yoy.

From a regional perspective, housing prices in the northeast and central and western regions are relatively concentrated. The eastern region has enjoyed relatively stable growth because of the number of cities that have issued control measures.

Zhang Dawei, chief analyst of Centaline Real Estate, believes that in May is the peak season of real estate market sales, hot-street city trading volume has recovered, house prices have risen upwards, volume has recovered, buyers just need to enter the market in the peak season, also led to May prices have risen.

According to statistics, more than 40 cities issued control measures in May. Before and after May 1st, the Ministry of Housing and Urban-Rural Development also interviewed 12 cities including Xi’an, Haikou, Sanya, Changchun, Harbin, Kunming, Dalian, Guiyang, Xuzhou, Foshan, Chengdu and Taiyuan. We must shake and do not relax, and implement the main responsibility of local regulation and control. Because the city adapts to local conditions, it is accurate to implement policies to ensure the stable and healthy development of the real estate market. Recently, the Ministry of Housing and Urban-Rural Development has issued the "Notice on Relevant Issues Concerning the Further Improvement of the Real Estate Market Regulations," and set forth clear requirements for further improving real estate control.

According to reports, despite the slight increase in prices in many cities, it is expected that the market will remain generally stable across the country under the increasing control.