SHANGHAI: A rising real estate trend in China is no longer a certainty as “unprecedented” state house control prices take effect, state media quoted a central bank adviser as saying on Saturday.
Chinese housing authorities have promised to stabilize land and home prices in 2019 and increase the supply of rental housing to address home affordability problems, state television reported in December.
The resources should be sufficient to ensure that house prices overall are stable over the next 10 to 15 years, the official China Security Review cited Sheng Songcheng, an adviser to the People’s Bank of China (PBOC) and dean of the China Chief’s research institute. Economic Forum, as said.
After a furious boom, China has gradually tightened regulatory controls on its massive real estate market since mid-2016. But domestic prices continue to rise, even as economic growth slows, and managing risks in the sector remains a priority.
This round of control measures on the real estate sector is unprecedented, and the expectation that domestic prices will rise forever is now reaching a critical point, Sheng noted at the 2019 China Chief Economic Forum annual meeting.
Sheng’s comments come as some smaller cities facilitate real estate controls in an attempt at the central government’s decision as growth slows in the world’s second-largest economy.
Sheng said stability or small declines in China’s housing prices were a good thing, and the government is constantly pushing regulatory brakes on the sector.
