China’s State Council announced yesterday that it plans to boost the supply of low-cost housing and redevelop slums in order to control an "overly fast" rise in property prices, the Wall Street Journal reported. The announcement highlights Beijing’s concern about the effect inflationary pressure from the stimulus package and the decision to maintain the renminbi at relative parity with a weakening US dollar are having on property markets. Urban property prices grew at their fastest rate in 16 months in November. Residential prices increased by an average of 5.7% in 70 cities surveyed by the National Bureau of Statistics. The State Council said that it plans to speed public housing construction, improve market supervision and stabilize expectations. It will also redevelop slum areas, state-owned factories and mines over the next five years.
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