2018-08-08

Ministry of Housing Will Hold Cities Accountable for Failure on Home Prices

China is ramping up real estate controls. The Ministry of Housing will keep an eye on local government real estate regulation going forward. Cities that fail to halt price increases will be "held accountable."

iFeng: 住建部坚决问责楼市调控不力的城市 这几个城市危险了!
On August 7, the Ministry of Housing and Urban-Rural Development held a symposium on real estate work in some cities in Shenyang, Liaoning. At the meeting, the Ministry of Housing and Urban-Rural Development put forward further requirements for the future real estate regulation and control work of participating cities, proposed to accelerate the formulation of housing development plans and resolutely hold accountable the cities where the property market is not well regulated.

This is the "first shot" of the relevant departments on the property market after the political bureau meeting made a clear statement on July 31 that it is determined to solve the real estate market problem and resolutely curb the rise in housing prices.

According to the reporters of China Times, according to the price index of 70 new large and medium-sized cities announced by the Bureau of Statistics, as of June 2018, new commercial housing in Chengdu, Haikou, Sanya and Dandong has increased more than 10% yoy in the past six months: 22.8%, 17.2%, 11.6% and 11.4% respectively.

Zhang Dawei, chief analyst of Zhongyuan Real Estate, told the China Times reporter that these cities are most likely to be held accountable first.
The MoH will implement a monitoring system to keep an eye on local governments.
During the meeting, the person in charge of the Ministry of Housing and Construction requested all localities to do a good job in the regulation and control of the real estate market, systematically analyze the outstanding problems and major risks in the local real estate market, adapt local conditions, implement precise measures, and comprehensively implement policies to stabilize local governments, stabilize prices, and stabilize The expected main responsibility is implemented to ensure market stability.

The Ministry of Housing and Urban-Rural Development will establish a real estate market monitoring system to improve the evaluation and assessment mechanism for local real estate regulation and control. It is necessary to strictly supervise and resolutely hold accountable for the lack of work, market volatility, and failure to achieve regulatory goals.

Ni Pengfei, director of the Center for Urban and Competitive Research of the Chinese Academy of Social Sciences, once said that the role of local government is the key to determining whether housing regulation is effective or ineffective and whether the real estate risk bubble is further expanding. Local governments have two roles in real estate regulation, one is the regulator, which is responsible for maintaining the stable and healthy development of the local real estate market; on the other hand, it is the market participant, the main body of land supply, if the real estate market is in good shape It can also get more taxes.

Therefore, from the interests of local governments, the determination of the implementation of real estate regulation is worth considering.

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