Zhang Mao, deputy head of the National Development and Reform Commission, said that China will put up with reasonable drops in property prices but will try to avoid sharp falls as the global financial crisis deepens.
He said, ‘Housing market turbulence may have some negative impact. But a reasonable price drop from a high level is helpful for the rational and healthy development of the real estate market.‘
State radio paraphrased Zhang Mao as saying, ‘However, we need to avoid steep housing price falls.’
Housing prices have dropped by more than 30% in some cities this year and transaction volumes have been weak. Beijing announced a series measures to stimulate housing demand as part of its campaign to support economic growth.