Aug. 24 (Bloomberg) -- China’s government is studying further measures to strengthen its control of the property market, the official Xinhua News Agency reported yesterday, citing an official with the housing ministry.
The government is “closely monitoring” changes in the real estate market and has ordered local governments not to relax property controls, the unidentified official with China’s Ministry of Housing and Urban-Rural Development was quoted as saying in the Xinhua report.
Property buyers, buoyed by two interest-rate cuts since June and incentives for first-time owners, have returned to the market even as the government pledges to maintain real estate curbs to make housing more affordable. China new-home prices rose in 49 of the 70 cities tracked by the government in July, the largest number of cities in 14 months, complicating the government’s efforts to clamp down on property speculation.
Easing policies by some local authorities were among problems that need “particular attention,” Xinhua reported on Aug. 17, citing findings from an inspection ordered by the State Council.
China’s property market is expected to stay stable, the housing ministry official said in the Xinhua report. Most buyers in recent months are first-time home owners, according to the official.
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