Opinion | Beijing's cooling policies will take time to work through
Cheaper 'self-use' flats will push up supply as stock from developers' land purchases kicks in
Beijing's property market is buoyant and the buying frenzy is not likely to be easily cooled by government measures in the short term.
But the impact may be seen gradually, taking into account the lag time for policy changes to have an effect.
The local government is certainly taking action to bring prices down. Last Wednesday, Beijing's municipal government announced a new round of policies aimed at curbing housing inflation.
The authorities introduced a medium-term plan by outlining a proposal to supply enough land for 20,000 "self-use" homes by the end of this year.
The homes will be priced at about 30 per cent cheaper than comparable housing nearby.
Beijing government officials have said the homes - aimed at low to middle-income groups - are planned to be offered at 2 million yuan (HK$2.5 million) or less, with a price range from 10,000 yuan to 20,000 yuan per square metre.
Most of the units will be less than 90 square metres. So far, some designated sites have been identified in non-core districts such as Tongzhou, Dahing and Changping.
