Beijing orders five Chinese cities including Guangzhou, Dongguan to rein in their runaway house prices

Name: Chinese real estate developer displays floor plans on models’ backs
Uploaded: 2021-04-10T02:00:13.000Z
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The deputy housing minister instructed top officials from Guangzhou, Hefei, Ningbo, Dongguan and Nantong to to roll out cooling measures where needed, according to Xinhua

The central government is signalling a greater willingness to intervene directly at city level, say analysts

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The government is signalling it is ready to intervene directly in individual cities’ housing markets, say analysts. Photo: Bloomberg

Pearl Liu

Published: 10:00am, 10 Apr 2021Updated: 10:00am, 10 Apr 2021

China’s central government has told the leaders of five cities to rein in their overheated residential property markets in a move analysts believe signals Beijing is prepared to intervene directly where required.

The deputy housing minister summoned top officials from Guangzhou, Hefei, Ningbo, Dongguan and Nantong on Thursday and instructed them to to roll out cooling measures where needed, according to the Xinhua state news agency.

“The local government should actively monitor new issues in its housing market, roll out efficient measures to put home price under control and crack down on speculation on homes to ensure a healthy market,” Xinhua quoted Ni Hong as saying.

“Local governments should take responsibility to ensure that a home is for living in, not for speculation and should not use the real estate sector as a short-term tool to stimulate economic development.”

Market observers believe the central government is determined to take a more active role in stabilising home prices in individual cities wherever “unsatisfactory” increases have been seen.

Home prices in the five named cities have all seen sharp rises this year. Guangzhou’s increased 3.47 per cent in the first three months, more than any other city in China.

In comparison, Shenzhen only recorded a 0.26 per cent jump in the same period.

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Chinese real estate developer displays floor plans on models’ backs