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China News: Chinese Government Encourages Reasonably Lowering Housing Prices

China News recently reported that one of the key 2016 goals set by the Central Economic Work Conference is to absorb the housing market inventory. The Conference clearly pointed out that real estate developers are encouraged to “reasonably” reduce the prices of commercially available assets. In the meantime, the government will discontinue “some outdated” policy constraints. The pricing recommendations are also to allow mergers to happen among real estate developers to improve “industrial concentration” in that market segment. In order to build up a new buyer’s base in the housing market, the central government is relaxing the restrictions that traditionally barred the agricultural population from gaining city resident status. However, the Conference warned that farmers working in industrial sectors in cities may have limited buying power – and they should not be pushed too hard into taking out loans for real estate purchases.
Source: China News, December 21, 2015