If soaring property prices in some mainland cities are not tackled, the issue will become a national problem, the Ministry of Construction has admitted.
The ministry announced on its website yesterday that some acute problems in the real estate sector had not been resolved because administrations in some parts of the country did not understand or implement control policies.
'Property prices are still rising rapidly in some cities,' the ministry said. 'If nothing is done, it is likely to become an overall problem.'
Property prices rose 5.7 per cent year on year in 70 cities in the second quarter, amounting to a 0.2 percentage point increase over the previous quarter, according to National Development and Reform Commission data.
The prices of new residential properties were up 6.4 per cent year on year for the second quarter, and up 0.1 percentage points from the first quarter.
Shenzhen recorded a 14 per cent rise, followed by Hohhot (12.2 per cent), Dalian (11.7), Fuzhou (9.8) and Beijing (9.5). Only two of the 70 large- and medium-sized cities reported decreases - Shanghai, with a 5.9 per cent drop, and Jinzhou (0.1).
