Construction: No easing of real estate curbs

(Shenzhen Daily)
Updated: 2006-12-01 14:01

China should not ease curbs on real estate development because high profit margins in the industry have made local governments keen to invest in more property projects, researchers from the country¡¯s top planning body said.

The government should redouble efforts to prevent an investment rebound in real estate and to limit property price increases, researchers lead by Wang Xiaoguang from the National Development and Reform Commission, said in a research note published in the China Securities Journal on Thursday.

Profit margins for real estate developers are as high as 30 percent, which could encourage further expansion and foil the government's efforts to rein in surging economic growth, the researchers said.

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