Zhengzhou City to Beef Up Real Estate Regulation, Control Prices
Yicai Global
/SOURCE : Yicai
Zhengzhou City to Beef Up Real Estate Regulation, Control Prices

(Yicai Global) Sept. 26 -- From the first half of this year, housing price rises in east-central China's city of Zhengzhou, Henan province have taken first place among large cities. The local government has therefore floated a raft of regulatory and control policies to rein in the speed of housing price increases. A local official stressed that Zhengzhou's city hall will continue to mint such policies to stabilize prices as needed.

Official data shows that, new housing prices rose by 5.6 percent in eight months, while the cost of previously-owned homes climbed by 4.5 percent, both of which tallied the highest increases nationwide, beating out 70 other large and mid-sized cities.

The Zhengzhou municipal government issued nine control measures on Sept. 14, the most important of which is to restrain soaring land prices by adjusting the amounts real estate developers pay to use land. On Sept. 21, the local government said it will provide 1,000 acres (400 hectares) in the main city districts for residential use before the end of this year, in a move the government hopes will improve real estate supply and demand, and which it expects will stabilize the market.

Mr. Ma Yi, Zhengzhou's party secretary, said yesterday at an official meeting that the city will bolster its regulation of housing, optimize the provision of commodity housing, control prices, and promote the real estate industry's healthy, stable and balanced development.

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