Reduce realty profit margin

We might see a cut in property prices if the government can control land costs, taxes and profits made by real estate developers, says an article in Guangzhou Daily. The following is an excerpt:

As housing prices remain unaffordable for the masses and potential home-buyers are still reluctant to invest in property, there is a deadlock forming in the real estate sector. The only way to break the ice is to cut prices.

Xu Jiayin, the chairman of Evergrande Real Estate Group and also a member of the national committee of the Chinese People's Political Consultative Conference, recently said that price cuts are possible if the government can control land costs, taxes and profits of real estate companies. Local governments, the central government, and real estate companies can also give away part of their interests.