Home Restrictions to Continue Into Next Year
Local governments were told by the Ministry of Housing and Urban Rural Development not to relax home purchase restrictions. Some of the controls that were implemented are about to expire at the end of the year.
One official of the Ministry said that China’s current property controls restricting home purchases will not change and will continue despite the fact that there are 11 cities in which the regulations are set to expire by year’s end. Aside from implementing monetary and tax measures, controlling home purchases is an effective tool in curbing transactions and stabilizing prices in cities where restrictions have been applied. Just last year, 48 cities issued the restrictions with 36 of those to be implemented indefinitely and only 12 cities have set an end to their restrictions by the end of the year or in February of next year.
China will continue to tighten controls on the property market after the announcement to dispel uncertainties, when the Central Government pledged to further tune macroeconomic policies that will sustain growth and answer concerns on falling home prices and their effects on the economy.