Guo Songhai, a member of the Chinese People's Political Consultative Conference (CPPCC) and also a professor at Shandong Economic University recently talked about how to curb the current breakneck real estate speculations, in an exclusive interview with China.org.cn.
He said affordable apartments in large cities like Beijing and Shanghai are as rare as crocuses and people who own affordable apartments are holding on to them at all costs, even if it is illegal.
As an expert in this regard, his enlightening perspective suggested how to curb the current breakneck real estate speculations. "Firstly, the government should ramp up land supplies in order to decrease land prices. Many developers have hoarded tracts of land, hoping to garner huge profits from inflated land values. The numbers are enormous. If the land lying idle could be put into use, then prices would go down significantly," asserted Mr. Guo.
"I know the land issue is really a hard nut to crack, because many local governments are cashing in on land when the developers come knocking their door," he also pointed out.
"Secondly, the government should impose property taxes for second apartment purchases to dampen enthusiasm in renewed fixed-asset investments," he continued.
"Thirdly, more efforts toward government-subsidized housing complexes are needed. Lack of oversight has led to some unqualified applicants getting the subsidized apartments at the expense of people who really need them," he said.
At this point, Mr. Guo paused for a while and continued: "More importantly, the state housing agency and other related bureaus should put sufficient controls in place to guard against potential abuses or conflicts of interest."
(China.org.cn by staff reporter He Shan, March 10, 2008)