Policies cool housing sector
10/6/2005 12:00
China's overheated housing industry is cooling off after the central
government strengthened macro regulation, the Economic Information Daily said
yesterday.
"The growth in real estate investment is on the decline while the
Chinese people's consumption on houses has become more rational," said a report
from the Ministry of Land and Resources.
The ministry just wrapped up a
survey in 24 regions and completed 146 reports on the issues like land
utilization and the status of market supply and demand, the newspaper
said.
So far, the proportion of urban land tapped for mid-range private homes
and economical houses has been on the rise, says the report. In Chongqing, the
proportion for economical houses has grown from last year's 5 percent to 10
percent.
In shanghai, the land supply for ordinary private homes is projected
at 2,000 hectares this year, up 138 percent over 2004, about two thirds of the
city's total supply for residences in 2005. In Ningbo, Zhejiang Province, the
proportion of land supply for economical houses rocketed from last year's 2.9
percent to 24.4 percent.
The survey also found approximately 2,500 hectares
of land have been vacant for more than two years nationwide. As a punishment, 49
hectares have been taken back.
To strike hard at speculation, Guangzhou,
capital of Guangdong Province, started to levy charges on vacant land from May 1
while the Chongqing municipal government declined to approve new land supply to
developers whose projects are not finshed.
To curb the overheating trend of
the real estate industry and secure the housing for the needy, the central
government has required local governments to restructure land supply, clear up
vacant land and monitor price fluctuations.
The ministry of Land and
Resources said it will design a long-term land development plan as well as a
special land fund.
Xinhua
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