Future Policies Implemented to Balance Growth of GDP with Home Prices
The country’s future policies are planning to strike a tough balance between a decelerated growth in the Gross Domestic Product and the rise in home prices. A senior analyst with the development research center of the State Council said that there will be an increase in difficulty for policy making in the property industry and its effects is even harder to predict.
Property industry is one of the supporting forces in the economic growth and structural reform a fact that hasn’t changed. A common logic among the policymakers said that property policies in the future still depends on the growth rate of the economy, which is shown a few months earlier when Premier Li Keqiang told provincial governors that these policies are the ones keeping the economic growth above the line wherein experts predicts is at 7.5 percent for 2013.
The purpose of maintaining the growth is to provide jobs that are vital for the social stability of the country. Based on the statement of the growth expert if the growth rate falls below the growth floor the government should probably respond by enforcing the existing policies and the delay by dealing out new policies that is meant for the property industry.
A home sale volume nationwide is still considers are the indicator that will signal the need for change in the policies. Timing is also crucial for the introduction of real estate tax that is said to depend also with the economic growth.