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Housing Ministry: Housing Not Ready for a Resurgence in Price

Xinhua reported that a key official from the Ministry of Housing and Urban-Rural Development made some comments on the recent trend of housing price increases in several cities following a two year long market adjustment in national housing prices. On the demand side, the housing market has warmed up since June because the market has seen an increase in supply and lowered interest rates. On the supply side, new construction and existing inventory remain high. The Ministry is still taking the position of questioning the readiness for an across the board resurgence in housing prices. The primary government focus is still on constructing more housing for low income citizens, while real estate taxes are in the planning stage. The central government is determined to suppress speculative investments in the housing market.
Source: Xinhua, September 23, 2012