China’s National Bureau of Statistics will soon conduct a special study of housing development costs in 40 key cities, including the basic terms of the builders, their financial condition, number of projects under way and composition of their building costs. In support of this research effort, an article in the Chinese Business View said there is no way to decide on reasonable prices of housing unless we know the actual cost of housing projects.
The writer explained the study aims to find out the reason for the prevalent high prices of houses. Following the survey, people expect the central government to map out a new policy for the real estate industry, and the new moves may affect housing prices.
The article said many people believed the real estate business thrives on exorbitant profits. People blame builders for the exceedingly high housing prices in cities across China and have attempted to make them disclose the real cost of construction. But, until now, few have succeeded in knowing the actual cost.
The article went on to say blocked information on costs of building houses doesn’t support insightful policy making, especially in times of financial crisis. Nor can it help to evaluate the earlier stimulus policies aimed at the real estate industry.
Cri.English.com reported that in conclusion, the writer suggested more parties be involved in the effort to remove the hidden information over building costs. Private sector companies should also be encouraged to carry out similar studies of the market and the industry. It added that third party studies, independent of both government and the real estate industry, may be more reliable.