Government Increases Efforts in Stabilizing Property Market
As the government increases their efforts to further stabilize the property market, the country is planning to increase the supply of land allotted for homes and to spend more to finance affordable housing projects. Prices for new homes have increase rapidly in the past three years as of September which added to the risk of the property bubble. Concerns were also expressed on the social stability on the market.
The country must determine on how to spend some more in their efforts to resolve some of the various problems of the housing market and every effort should be made to further increase the supply of housing while adjusting to the public’s demand for housing. The government will be establishing a housing supply system and is responsible for the supply affordable housing as the market forces will decide on the supply of other kinds of housing. Despite of the slow economic growth and the government’s effort in curbing property prices, it continued to rise partly because of the view that owning properties is a good investment.
Property prices in shanghai and in Beijing was especially high in September which peaked at 17 and 16 percent prompting the local government to promise to increase the supply of cheaper housing. Last year the country spent more than a trillion yuan in building affordable housing and is planning to build more than 4 million homes this year.