A report from the State Development and Reform Commission indicates that the real estate market will face a period of adjustment that will last two to three years, says China Securities Journal.
It is anticipated that a neutral and loose macro control policy will be adopted in 2009 to offset continuous economic slowdown. According to the report, a price fall and decrease in turnover in the real estate markets of some of the major cities indicates that the once flourishing property market is moving into a period of adjustment.
In the next two or three years, investment in the real estate market is likely to drop significantly, which will bring about a corresponding adjustment in industries such as heavy chemicals and iron & steel, thus impacting on building material manufacture and other related sectors.
It is suggested that under prudent fiscal policy and monetary policy there should be a structural loosening next year; currency and credit supply should be properly extended. To ensure an increase on the demand side, certain measures should be carried out to stabilize prices of houses and cars. Reforms in other fields such as finance, taxation and income allocation should also be accelerated.
For more details, please read the complete story in Chinese:
(http://paper.cs.com.cn/html/2008-10/14/content_18290352.htm)
(China.org.cn by Fan Junmei, October 14, 2008)
