Shenzhen's mayor warns on property

Authorities have an unshakeable responsibility to rein in runaway property prices and guide the market towards health and social harmony, Shenzhen's mayor said yesterday.

Xu Zongheng's comments in the Southern Metropolis News yesterday were the first public statements on the issue by a senior city official, and came after a day of discussions with representatives from banks, developers, the city people's congress and government.

Official data shows Shenzhen housing cost an average of 14,223 yuan per square metre last month, up 52 per cent on last year's average. Prices rose 22 per cent from April to May this year.

Mr Xu said property prices in the city had jumped too quickly and authorities would have to lower them by meeting annual land supply targets, building cheaper, smaller commercial housing units for rent and sale, and controlling 'the order of the property market'.

The report quoted a housing and land resource bureau official as saying it would soon investigate all property on sale in Shenzhen to eliminate illegal speculation. The official said the bureau would punish developers who delayed selling housing in order to reap higher profits. He also said Shenzhen would support and follow the central government's macroeconomic control measures.

Industry insiders had differing views on the probable effects of the officials' plans.