Property market set to continue stabilizing as regulation takes effect, says official

Source:Xinhua Published: 2017/10/22 22:03:40

China's property market is expected to continue stabilizing in the fourth quarter of this year, a senior government official said on Sunday.

The market will continue to see slower growth in transaction volume and stabilizing prices, Minister of Housing and Urban-Rural Development Wang Menghui told a press conference on the sidelines of the 19th National Congress of the Communist Party of China.

"For the whole year, the property market will maintain stable performance," he said.

The government will not waver in its efforts to achieve the goals of property market regulation and will maintain continuity and stability of policies, Wang told reporters.

Authorities are studying a "long-term mechanism" for real estate regulation and advancing legislative work on the development of the home rental market, he said.

Regulatory moves since October last year have had an effect, curbing property buying for speculative and investment purposes and reining in excessively fast price increases, said the minister.

He pledged to move faster to put in place a housing system that ensures supply through multiple sources, provides housing support through multiple channels, and encourages both housing purchases and renting.

China's rocketing house prices, especially in major cities, had fueled concerns about asset bubbles before dozens of local governments passed or expanded their restrictions on house purchases and increased the minimum down payments.

The market was cooled down by relatively tightened liquidity conditions as the government moved to contain leverage and risk in the financial system.

Xinhua reported in early October that in North China's Tianjin, most commercial banks' house loan interest rates are 5 to 10 percent higher than the standard interest rate.

Of the 70 cities surveyed in August, the pace of new home price growth slowed in 15 of them compared with the same month of last year.

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