Move will reassure buyers and control prices, says analyst
Guangzhou will release enough land over the next five years to increase the city's new housing supply by almost 25 per cent in what an analyst says is an effective measure to reassure buyers of continued supply and to control prices.
The Guangzhou Land Resources and Housing Management Bureau plans to increase the supply of new houses in the 11th Five-Year Programme (2006-2010) to 562,400 homes covering 53.5 million square metres, up from the 42.9 million square metres supplied in the past five years.
Over the weekend, state media reported that both Shanghai and Beijing were in the process of introducing new measures to increase the supply of low-cost housing.
For more than a year, the central government has urged local authorities to rein in soaring property prices, especially in big cities like Shanghai and Beijing, and increase the supply of affordable housing for low-income families.
Long Bin , an analyst at Man Tang Hong real estate brokerage, said the increased supply would help stabilise the market.
