Nasty home prices

0 CommentsPrint E-mail China Daily, January 20, 2010
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"Land prices in Kunming are lower than in all neighboring (provincial capital) cities. But not home prices. Why? Because the money has found its way into the purses of developers. This is huge corruption. Why? Because some officials have played the role of protectors of developers."

The statement could have been from anyone irate over soaring housing prices in Kunming, or any other Chinese city. Except for the obvious truth, it shows little restraint.

But that doesn't matter. What matters is that Qiu He, a controversial Party chief in the southwestern city, is the person who said the angry comments. The outspoken Party cadre is known not only for his disregard of unspoken rules in civil service, but also for his unyielding resolve for pressing ahead with what he believes to be correct.

The remarks immediately made a stir on the Internet, inviting comments that were overwhelmingly sympathetic.

We have heard plenty about corruption behind skyrocketing home prices well before Qiu's comments. We therefore agree with those who say Qiu's outburst was nothing but belated acknowledgment of a plain truth.

But still, Qiu, for making his comment, garners our respect. He is after all one of the first officials to openly express his opinion of the corruption behind the housing industry.

And chances are we may expect more after Qiu's comments. How will his assertion that local authorities were aware of evidence of corruption pan out? He also said that some officials would be investigated. We are waiting to see what happens next.

It may be overly simplistic to unilaterally blame unreasonable and increasingly unbearable real estate prices on corruption. State monopoly of land ownership, and the local governments' emphasis on land use rights as a major source of revenue and growth are also partly responsible. Corruption in land transactions is a mere nasty consequence.

But such a cancerous consequence has an immediate impact on housing prices and public perception of the problem. Many tend to accept the assumption that government officials have allied with developers to keep housing prices rising.

Qiu, in fact, confirmed this sentiment: "Now in our city, some bosses have kidnapped officials to stage a puppet shadow show. The officials are the puppets, and the bosses are the string-pullers. The officials are chess pieces, and the bosses are chess players."

If this is also true in other places, what does that mean for the country and the society at large? We can't afford to imagine.

By airing the truth, Qiu is now obligated to act. We are sure he will do something.

But without sufficient sympathy and support from within his own ranks, he can't go far.

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