Housing Price
The premier vowed to control the overheated property sector and keep
housing price at a reasonable level.
"The real estate industry should focus on developing reasonably priced
commercial housing for ordinary people," Wen said in a report on the work of the
government at the opening meeting of the annual session of the National People's
Congress, or parliament.
"We will improve the supply structure of commercial housing, and strengthen
oversight and regulation of housing prices," he said.
According to the National Bureau of Statistics, the average price of the
newly-built commercial residential buildings in 70 big and medium-sized cities
nationwide rose 6.1 percent year on year in January, with that in Beijing
climbing 9.9 percent.
The Ministry of Construction stipulated last year that the floor area of 70
percent of the newly-built commercial residential flats should below 90 square
meters each in a bid to ensure more affordable housing for average citizens.
Wen said the government will pay particular attention to addressing the
housing problems of low-income families. "We will increase fiscal and tax policy
support and set up a sound system of low-rent housing," he said.
He noted that China will strengthen oversight over the real estate sector and
crack down on law-violating activities in the property development and sales.
"Local governments must assume their full share of responsibility for the
regulation and oversight of local property markets," Wen said.
The premier also said the government will keep consumption at an appropriate
level and build environmentally friendly buildings as the country has a large
population and relatively little land available for housing building.
Inaction of local officials is widely blamed for the surging housing price.
"Many of them see the real estate sector as a major economic growth pillar. As a
result, they are unwilling to implement centrally set measures to cool off the
overheated property sector," said Wang Changde, a member of the National
Committee of the Chinese People's Political Consultative Conference (CPPCC), the
country's top political advisory body.
CPPCC member Chu Yaping, deputy director of the supervision bureau in central
Henan Province, said officials should be held accountable if they fail to
guarantee sufficient affordable housing for local residents.
