Beijing Issues Urgent Notice Vowing To Maintain 'Firm Grip' On Chinese Real Estate

China property construction

Photo: China Photos/Getty Images

Just yesterday we wrote that Beijing was embarrassed by the rise in property prices.Now an urgent government notice has warned that Beijing will continue to maintain a ‘firm grip’ on real estate, according to Xinhua, the state news agency.

A statistician at the National Bureau of Statistics said the two interest rate cuts aimed at improving growth, had sparked concerns of a further increase in home prices.

China has been tightening its property curbs since 2010 and policymakers are hoping to keep prices low. From Xinhua:

“Local authorities must strictly implement the nation’s property control policies. They should not relax the control and relevant requirements unauthorised,” according to the notice.

“Those that have loosened up controls must set straight the policies,” said the notice, which was jointly released by the Ministry of Land Resources (MLR) and the Ministry of Housing and Urban-Rural Development.

It also ordered local authorities to step up efforts in monitoring land pieces left idle even though they were sold.

The notice also pushed local governments to ensure that land was first being made available for affordable housing, which is part of Beijing’s plan to stabilise growth.

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