At several high-level central government meetings in the past few months, the focus for policymakers has been deflating China’s giant real estate asset bubbles in order to keep the wider economy healthy.
By
NewsChina
Updated Dec.1
At several high-level central government meetings in the past few months, the focus for policymakers has been deflating China’s giant real estate asset bubbles in order to keep the wider economy healthy. But the steps so far have failed to cool down the craze for land in first-tier cities. Property developers, especially State-owned enterprises that are flush with cash thanks to easy credit, have piled into the land auction market, setting record after record for purchases thanks to the tight control of the land supply and the lack of transparency. The rocketing housing prices have exposed the limitations imposed by the administrative monopoly on land supply, highlighting the need for urgent reform. Experts said that the way out of this trap is to give the market a more decisive role in allocating land,which would help in better meeting the fluctuations of demand.
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