Real estates sales slacken

The Chinese government may consider easing strict controls to give the stagnant property market a much-needed boost, the 21st Century Business Herald has reported.

The China Real Estate Association (CREA) recently called on the government to shift its policies from ’strict’ to ‘moderate’ control on the property market.

The proposal appealed for local governments to be allowed to help the property market at their discretion, lowering taxes in real estate trading, encouraging housing needs for improving living conditions, and strengthening the industry’s early warning system.

Gu Yunchang, vice-chairman of China Real Estate & Housing Research Institution said policy changes were necessary.

“Those policies were made at a time when the property prices were skyrocketing,” Gu said. “Things are just the opposite on the market now.”

But Yi Xianrong, a researcher at the financial research center of the Chinese Academy of Social Sciences, said the current sluggishness stemmed from developers’ own bad judgment of the market situation; therefore they should take responsibility for the consequences.
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Source: China Daily