China's Ministry of Construction is mulling over new measures to
curb collusion in raising prices by property developers, the
China Business News reported on Wednesday.
Qi Ji, vice minister of Construction, recently criticized at a
symposium that some developers were only interested in building
large-sized luxurious apartments for high profit.
Some development companies hoarded land and apartments or spread
false information to create public fear for housing shortages so
they could drive up prices, he said.
"The ministry is studying relevant policies to prevent
developers from colluding in jacking up prices and to stabilize
housing prices."
Earlier this month, the State Council, China's cabinet, made
amendments to the Regulation on Administrative Punishment for
Price Violations to allow more stringent penalties for illegal
price manipulations.
"In future, we will intensify checks over real estate companies
and enhance punishment. Dishonest developers will be cleared out of
the market," Qi said.
"Housing is not a common commodity, but a necessity bearing the
basic interests of the public. Developers shall not ignore the
people's expectation while pursuing profits."
A recent report by the Chinese Academy of Sciences (CAS)
predicted China housing prices would keep rising this year and the
rate would be roughly equal that of 2007.
From January to November of 2007, housing prices in 70 major
Chinese cities jumped 7.3 percent over the same period a year
earlier. Housing prices were up at a rate of 10.5 percent in
November alone, a report by the Chinese Academy of Social Sciences
(CASS) showed.
The November rate was the highest monthly gain since July 2005
when the monthly housing price survey started.
The government has been trying to solve the housing problem of
many low- and medium-income residents by offering more low-rent
apartments and affordable small- and middle-sized flats.
(Xinhua News Agency January 18, 2008)
