As Beijing’s powerful blow to the real estate industry has caused a shock to the property market, officials across the country are taking measures to stabilize housing prices.
Local government interventions, including expanding subsidies for young home buyers and prohibiting developers from “maliciously cutting prices” on new homes, reflect the authorities’ attempts to find a delicate balance between curbing out-of-control housing prices and curbing developer debt — all of this The premise is not to cause a wider panic in the key real estate market.
According to the Wall Street Journal’s statistics on written government notices and official media reports, since August, government officials in more than a dozen cities across the country have taken measures to prevent prices from plummeting.
However, at the same time as the above measures are introduced, some of China’s largest and most expensive cities are also implementing price caps to prevent prices from rising too fast. This policy deviation reflects the differences in China’s vast territory and highlights the challenges faced by policymakers, because this is the first time home buyers question the long-standing notion that house prices will continue to rise.
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