CHINA has urged local authorities to adjust land supplies based on their situations in a bid to revive the country’s stagnant property market.
Cities with an oversupply of houses should cut or even halt residential land supply and control the pace of construction while stocks should be raised in cities where there is a shortage of homes, the Ministry of Land and Resources and the Ministry of Housing and Urban-Rural Development said in a joint statement released yesterday.
“The property market has been adjusting since last year, with falling sales, slowing investment growth and widening regional disparity,” the statement continued. houses beijing
“Local governments should improve housing conditions to support residents’ needs and promote a stable and healthy growth of the housing market.”
The ministries also said cities suffering from oversupply of houses could change untapped residential land to industrial land to meet the needs of aged care as well as for cultural and sports purposes.
“The new policy is flexible and targeted in addressing an imbalance in supply and demand,” Xia Dan, researcher with Bank of Communications, said in a note yesterday.
First-tier cities as well as some coastal cities such as Xiamen in Fujian Province and Haikou in Hainan Province face a housing shortage while other cities face pressure to trim housing inventories, Xia said.
China’s property market continues to fall this year as home prices decline amid tepid demand. The average home price in 100 monitored Chinese cities in February shed 0.24 percent month on month and 3.84 percent year on year, the China Index Academy said.