SHANGHAI–China has told its local governments to keep a firm grip on the housing market to prevent property prices from rebounding, state media reported Friday, citing an urgent government notice. This is the first month in the past year that Shnaghai property prices have gone up.
“Local authorities must strictly implement the property-control policies. Don’t relax the control without authorization. Those that have loosened controls must rectify the policies right away,” the state-run China Securities Journal cited the notice as saying.
Everyone was waiting for the big bubble to burst and hope to see property fall 20-30% but that’s a dream in China. The rich get richer the poor get poorer and the middle class die.
The notice was jointly issued Thursday by the Ministry of Land Resources and the Ministry of Housing and Urban-Rural Development, according to the China Securities Journal, Shanghai Securities News and other state-run newspapers.
The notice urged land and housing authorities in local governments to strengthen the property-control policies and firmly prevent housing prices from rebounding, according to state media.
Signs of a recovery in China’s housing market have been growing in recent weeks, with transaction volumes increasing and property prices stabilizing.
Latest data from China’s top statistics bureau showed that average home prices in 70 Chinese cities were flat in June from May, ending eight months of declines and offering another sign that the real-estate market may have bottomed out.