Real Estate Control Policies Will Not Be Relaxed: Ministry of Housing

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The head of China’s Ministry of Housing and Urban-Rural Development said that real estate control policies launched a year ago to contain overheating housing prices will not be relaxed.

“[We] will not waver in upholding control targets, and their vigour will not relax” said Wang Menghui (王蒙徽), head of MOHURD, to reporters at the sidelines of China’s Two Sessions in Beijing.

“[We will] maintain the continuity and stability of policies, and in particular further strengthening of the local government accountability system.”

Beijing’s municipal government took the lead in applying strict controls to its real estate market in March of last year, prior to their adoption by a slew of major cities around China.

Analysts say the controls have proved effective at containing overheating housing prices in China’s urban centres.

According to Wang the application of differentiated real estate control policies that are tailored to specific locations has “maintained the stable operation of the real estate market,” as well as “effectively contained excessively rapid rises in housing prices…and actively changed real estate market expectations.”

“The next step will be for us to deeply implement the spirit of the 19th National CCP Congress, and uphold the principle that housing is to be used for occupation, not speculation.

“[We will] accelerate reform of the housing system and the establishment of real estate mechanisms that are effective over the long-term, as well as maintain the stable and healthy development of the real estate market.

“[We will] accelerate the establishment of a residential housing system with multiple supply parties and multiple guarantee channels, that gives equal play to leasing and purchasing.”

Wang said that China will also “establish and improve real estate statistics and market monitoring and alert mechanisms” in order to raise the accuracy of market controls and strengthen regulation of the real estate market.

The MOHURD head highlighted in particular the need to strike against illegal conduct on the part of real estate companies and intermediaries.

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