Categorized | International

Chinese Government Plans to Continue Regulating Housing Market

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While various cities made moves to counteract property restrictions that have hindered local residential real estate markets, China’s national government has made it clear that they do not plan to ease up on their imposed restrictions at any point in the near future.

 

China’s government recent stated that they have no intentions of eliminating, or even easing the current restrictions that are in place until real estate market values have fallen to what they deem to be a reasonable level.

 

The government continues to work towards making housing affordable for all. In addition to the restrictions that are intended to reduce property values, China’s government has been developing low-income housing to further increase home ownership. They plan to construct over seven million housing units across the country.

 

China’s Premier recently addressed the national parliament following the decision of various local governments to act out against the current regulations in place. It has yet to be seen as to whether those acting out against the government will be penalized in some sort of fashion.

 

The various measures that are still in place in China include the requirement of higher down payments, increased loan rates, higher property taxes, and, as mentioned, construction of low-income housing.

 

As a result of the residential real estate restrictions, property developers have faced immense struggles. Other markets around the world have also struggled due to the decline in imports of raw building materials to China.

 

With the most recent announcement, the government has officially made it clear that it has no plans to remove restrictions on the housing market at any time in the near future.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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