China plans property measures but aims to promote long term investment-officials |
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Fri, 02 Feb 2007 11:25
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CHONGQING, China (XFN-ASIA) - China plans to implement new real estate policies that may restrict short term investments but will not threaten long term projects, a senior official said.Overall, the policies will be favorable to foreign and domestic firms investing in China's buoyant real estate market, said Ba Shusong, vice director-general of the financial research institute under the State Council's Development Research Center.Ba did not give details of the policies or say specifically when they might emerge.But his statement followed similar remarks by Meng Yi, deputy director general of Chongqing's administration of land resources and real estate.Both officials said there is a need to stem the speculative short-term investment that is seen by many as pushing up property prices, particularly in major cities such as Beijing and Shanghai.'Real estate problems cannot all be solved by the market,' Ba said.China's central government has in recent months moved to slow price increases in the property market.It has tightened tax measures and is believed to be considering new taxes on real estate holdings. It has also placed restrictions on quick resales as well as foreign investment.Ba also said there is a need to improve the effectiveness of current regulations though he did not give specific examples.The prospect of new curbs on real estate investment did not appear to worry some major foreign real estate investment companies.'We will not be largely affected by any moves the government makes in tightening the market,' said Richard van den Berg, ING's China manager.'If anything, new policies will help rid the market of weaker players and ultimately make the market more stable.fergus.naughton@xinhuafinance.com
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