The central government's next steps to cool the
nation's overheated property market will be targeted at real estate enterprises,
according to local media.
Investigations have been launched into more than 300 real estate projects in
Beijing, China Business News quoted Li Wenjie, general manager of Beijing
Centaline Real Estate Agency, as saying.
Li said that the central government took the step after previous financial
measures to rein in soaring housing prices had little impact.
The investigation aims to crack down on malpractices by real estate
enterprises, such as illegal acquisition of land and tax evasion.
Several governmental departments, including the Ministry of Construction, the
Ministry of Land and Resources, the Ministry of Finance and the China Banking
Regulatory Commission, will carry out investigations, Li said.
Beijing's municipal bureau of land and resources and bureau of construction
did not confirm the news yesterday.
Zhu Zhongyi, chairman of China Real Estate Association, said supervision of
real estate enterprises has always been part of the nation's efforts to regulate
According to a notice released by the Ministry of Finance earlier this month,
39 real estate enterprises have been caught concealing their profits.
The Beijing Municipal Bureau of Land and Resources announced on November 2
that it would investigate and punish at least 30 real estate projects that are
suspected of illegally occupying land by the end of the year.
"Real estate enterprises in Beijing are healthy as a whole," said Zhang
Junyao, vice-chairman of the Beijing Real Estate Association. "They have made
great contributions to the capital's economic development in recent years."
"Real estate has become one of Beijing's pillar industries and will continue
to grow together with our country's economy,
"The municipal government has adopted measures to standardize the real estate
market and some of them are quite successful," he said.
Zhang admitted that the efforts to stabilize housing prices in Beijing have
achieved little success, but "vigorous demand for houses in major cities is the
most essential factor behind the rising prices," Zhang said.
According to statistics jointly released by the National Development and
Reform Commission and the National Bureau of Statistics, the average price of
new houses in 70 major cities in October increased by 6.6 per cent over the same
period in 2005.
In October, Beijing's average housing price increased by 10.7 per cent over
the same period last year, the fastest growth rate in the country, followed by
Xiamen (10.5 per cent) and Shenzhen (9.9 per cent).
Since the beginning of this year, the Beijing municipal government has
adopted a series of measures to cool down the market.
"I believe the future trend is that the government will make policies to help
large enterprises grow while small enterprises with inadequate assets and
quality will gradually be ousted," Zhang said. "The real estate market will
become more and more standardized."