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Xinhua: Housing Market Heading Up Despite Increased Government Control

Xinhua recently reported that, according to data just released by the National Bureau of Statistics, sixty-eight out of seventy major cities recorded an increase in housing prices during the month of March. This was especially true of large cities like Beijing and Shanghai. Just two months ago, the central government came up with the new “Five National Rules” which were considered very tough and were expected to be very “damaging” to the housing market. Experts expressed the belief that “concentrated demand” was the cause of the situation; buyers fear that new rules will make it harder to buy any real estate. Some suggested that, in this case, executive orders are not the best way to regulate the market. Others said that the long overdue real estate tax could have helped. The report also mentioned that a comprehensive market approach that considers all key factors, including currency flow, land pricing, and the supply-demand relationship, should be taken. 
Source: Xinhua, April 20, 2013