THE austerity programme implemented by Beijing could stabilise the mainland's property market and help foster a better development of the industry, says an official with the Ministry of Construction.
He Heping, vice-director of the ministry's real estate industry department, said an adjustment in China's property market, as a result of the tightening up of credit, would enhance a ''healthy'' development.
After a seminar in Hongkong yesterday, Mr He said the central government was very concerned about the problem of speculation in the real estate market.
He revealed that a new set of regulations and administrative measures was expected to be in place by the end of this year to reinforce controls on the industry.
According to Mr He, real estate developments in China absorbed about 73.1 billion yuan (about HK$98 billion at official rates) last year, representing an increase of 117 per cent over the value in 1991.
He said the mainland property market was still at ''a relatively young stage'' compared with those in developed places such as Hongkong and Macau.
Mr He expected that China would see a larger and faster development in the real estate industry.