Measures cooling property market
Rate of growth reined in for 35 mainland cities during second half of last year, senior planning official says
Government measures designed to cool down the property market are working, according to a senior planning official, with average real estate prices across the country rising by only 0.6 per cent in the second half of last year.
Property prices in 35 large mainland cities rose by an average of 9.7 per cent in the first half of last year, but the rate of growth slowed to 7.2 per cent in the second half, Zhu Zhixin, vice-minister of the National Development and Reform Commission, told a news conference on the sidelines of the annual session of the National People's Congress.
He did not say how much average prices rose across the country for the full year.
Mr Zhu said that the government would continue its rectification of the property market with measures to curb surging prices in main cities.
He said efforts must be made to increase the supply of land for lower-end housing and to give guidance to the property market at different levels.
'We want to speed up the development of ordinary residential housing, increase the supply of small, low- and medium-priced housing, and strengthen our efforts to give guidance to the property market at different levels to achieve stable housing prices.'
Central government leaders have expressed particular concern that speculation in high-end property in Shanghai, Beijing and other large cities is driving prices to unsustainable levels, raising the risk of a property bubble.
Mr Zhu said the situation in the property market had improved since the central government announced a set of policies, including credit and tax measures, to curb overheated investment and speculation last March and May.
Ma Kai , the minister in charge of the commission, told a news conference on the 11th Five-Year Programme that the central government was determined to bring more practical benefits to ordinary citizens during the next five years.
Mr Ma said the five-year blueprint would mean ordinary citizens would have money in their pockets, better jobs and a better environment.
The poorest would be better cared for.
He said the blueprint's top priority was to promote development in agriculture and rural areas, and to help farmers.
Analysts said the shift to more pro-rural policies came amid growing concern in Beijing over increasing rural unrest, often related to land, wages and environmental issues.
Mr Ma said that per capita rural cash income would be raised to 4,150 yuan by 2010, up from last year's 3,255 yuan.
Urban disposable income would reach 13,390 yuan, up from last year's 10,493 yuan.
To achieve the goal, Mr Zhu said the central government would channel more financial resources to poorer regions as part of an effort to narrow the gap in living standards between different parts of the country.
He said it was important to close the gap in terms of public services and standards of living.
'No matter where people come from, they should enjoy the same living standards, with access to education, public services and health care.'
