Subsidies no great help

The financial subsidies offered by the government of Xi'an in a bid to prop up the sluggish real estate market may backfire, says an article in Qilu Evening Post. The following is an excerpt:

According to media reports, the government of Xi'an unveiled measures to help the real estate industry recover, offering financial subsidies to homebuyers at a rate of about 1 percent of the housing price from September 4 to the end of next year. Meanwhile, developers also will get financial support from the government.

For example, real estate developers will see the administrative fees handed over to the government being cut down by 35 yuan per square meter. This cut will greatly reduce building costs for them.