China to Maintain Tight Controls on Property Market

Posted July 14th, 2011 at 10:55 am (UTC-5)
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China says it will take further steps to control prices on new home purchases, as part of a push to cool its overheated housing market in major cities.

The State Council, the Chinese cabinet, said Thursday it will move to tighten existing property restrictions in cities that have seen “excessive” increases in housing prices.

Beijing has introduced a range of measures aimed at controlling spiraling housing costs, which authorities fear could spark civil unrest if unchecked. Among the measures are bans on buying second homes in some cities and increasing the amount a home buyer must pay down on a new purchase.

The Cabinet also renewed calls on Thursday for local governments to begin work on plans for building more affordable public housing aimed at buyers unable to afford more expensive properties.