Surging property prices top agenda of annual plenary sessions
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A primary focus of this year's annual plenary sessions is the controlling of runaway housing price, as increasingly un-affordable homes have triggered public complaint. Many proposals address how to rein in the market and to satisfy people's basic needs for housing.
Surging property prices have been met with increasing public unease.
Driven by record bank-lending and favorable tax breaks, China has seen a sharp nationwide hike in residential property price, triggering heated public complaint and fear of a possible asset bubble.
Although the government began taking steps to deflate housing price late last year, property prices in 70 large and medium sized cities still rose 9.5 percent in January, the steepest increase in 19 months.
These pressures have made reining in the property market the primary concern of this year's annual plenary sessions. One option is to increase supply.
Zhang Xiaoji, CPPCC Member of State Council Researcher, said, "I think we should increase property supply. China is in the process of urbanization. So many people want to buy homes in cities. There is huge potential for housing demand. My biggest concern is developers may slow down property supply when macro controls on the property sector are put in place."
Controlling speculative investment demand is considered key to preventing the housing market from inflating at a dangerously fast pace. Many are suggesting differentiated credit and tax policies to target investment demand.
Jia Kang, CPPCC Member, said, "Imposing a reasonable level of taxes on real estate ownership would help contain speculative activities, adding to the costs of speculation. Real estate tax would change the expectations of home buyers and home sellers, thereby stabilizing housing prices. Though we do not expect housing prices to fall amid a long-term urbanization process, I believe such taxes could help curb rapid price increases."
One approach that has gained widespread support is the expansion of low-cost housing projects for ordinary people in order to satisfy their basic living needs.
Suo Liansheng, Beijing NPC Deputy, said, "It is important that the government uses its financial strength to guarantee affordable housing for low-income families."
However, many say the enforcement of rules should still involve more efforts to make the process just and fair.
