[photopress:Demolished_property.gif,full,alignright]Eight Chinese government departments will launch a campaign later this month to curb illegal activities in the real estate market. Power misuse, illegal land acquisition and tax policy implementation will be targeted by the Ministry of Finance, the Ministry of Land Resources, the National Development and Reform Commission and five other departments.
In an effort to curb overheating of the property market, the government has already limited foreign buyers and increased taxation.
There will be additional monitoring of tax dodging, illegal advertising, contract cheating, driving up housing prices and the dismantling of houses by force.
According to the Ministry of Land Resources last year, between 60% and 90% of land acquisitions for construction in China were illegal.
Surges in housing prices have caused some people to spend more than half their monthly income on loan repayments. The price of newly-built homes rose 13.5% in February from a year earlier across 70 major cities in China, despite the goverment’s announcement that it would set up nine regional offices to curb investment and monitor land transactions at a local level.
Source: Shanghai Daily and WATAsia Research