(Yicai Global) Feb. 1 -- Shanghai will plow on with its goal of maintaining stable land and house prices to keep them in line with market expectations, according to its Mayor Ying Yong.
"We don't want to see overly high house prices in Shanghai," Ying said at a press briefing yesterday. Shanghai has enhanced property regulation in line with national requirements over the past two years and achieved stable and healthy development, he added, saying prices and market outlooks are mostly on par.
Shanghai is looking to form a long-term mechanism to improve real estate market regulation, Ying said, adding that the city must stick to President Xi Jinping's mantra that a house is a home, not an investment. Shanghai must maintain strict control on prices and reduce the city's dependence on real estate for economic growth and fiscal revenue, he continued.
The floor area of new and second-hand homes sold increasing 2.2 percent and 5 percent, with their respective price indexes rising 0.4 percent and declining 2.7 percent, Ying added, saying it "isn't easy to achieve such results with tight regulation." Investment in Shanghai real estate rose 4.6 percent last year.