[photopress:development_plans.jpg,full,alignright]Eight Chinese government departments are combining in a campaign against illegal activities in the real estate market. There is little doubt they will be busy.
The eight departments include the Ministry of Finance, the Ministry of Land Resources and the National Development and Reform Commission. Together they will crackdown on the illegal acquisition of land and misuse of power. They will also supervise the implementation of tax policies in the property market.
The departments will also keep an eye on real estate companies who publish illegal advertisements, drive up housing prices, cheat in contracts, dodge taxes, or dismantle houses by force. They will gather residents’ complaints and follow up clues found in checks to punish those involved in bribery in property transactions.
How much will they have to do? Interesting question. The Ministry of Land Resources said last year said more than 60%, and in some cities as high as 90%, of recent land acquisitions for construction in China were illegal. Which, statistically, means most property developers at some time or another have been in breach of the law. If they are all charged, found guilty and punished property development will probably slow somewhat from its current hectic pace.
Source: Shanghai Daily