[photopress:billboard.jpg,full,alignright]Researchers from the country’s top planning body state positively China should not ease curbs on real estate development. One reason is that high profit margins in the industry have made local governments keen to invest in more property projects.
Researchers lead by Wang Xiaoguang from the National Development and Reform Commission, said in a research note published in the China Securities Journal that the government should redouble efforts to prevent an investment rebound in real estate and to limit property price increases.
Profit margins for real estate developers are as high as 30 percent. This, researchers said in turn encourages further expansion and works against the government’s efforts to rein in surging economic growth.
Source: China Daily