China not to loosen regulations on housing marketMarch 14th, 2012 - 2:07 pm ICT by IANS
Beijing, March 14 (IANS) Chinese Premier Wen Jiabao said Wednesday the country will not slacken it efforts in regulating the housing prices, which he considered still “far from falling back to a reasonable level”.
“If we develop the housing market blindly, a bubble will emerge in the housing sector. When the bubble bursts, not only the housing market will be adversely affected, it will weigh on the entire Chinese economy,” said Wen at a press conference after the conclusion of China’s annual parliamentary session.
A reasonable housing price should match the people’s income, the construction cost, and the profit should be reasonable too, added Wen.
Wen called for long-term, steady and sound development of China’s property market, saying the gains will be lost and chaos will occur in the housing sector if the current regulations are loosened, reported Xinhua.
The people’s housing demand is inelastic and durative as China is a big country with 1.3 billion people, and in a stage of rapid industrialization and urbanization, according to Wen.
He said instead of each one having his own home, “we will continue to encourage people to rent houses”.
Wen said while the fundamental role of the market in allocating resources should be fully exerted, the hand of government is indispensable as it can promote stability and social equality.
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Tags: allocating resources, beijing, chaos, china, chinese economy, chinese premier wen jiabao, conclusion, construction cost, fundamental role, housing market, industrialization and urbanization, parliamentary session, premier wen jiabao, rapid industrialization, social equality, wen jiabao, xinhua