Proper rules vital to healthy realty sector

The ever-rising housing prices have been tamed thanks to the intensive macro-control measures of local governments. In fact, housing prices have either fallen or increased at a much slower rate in 70 big or medium-sized cities because of the purchase restrictions imposed on homebuyers in many first-and second-tier cities.

In October, the 19th National Congress of the Communist Party of China reiterated that houses should be for living in, not speculation, reflecting the central leadership's determination to maintain stability in the realty market. Which in turn suggests the macro-control policy for the property market in first and second-tier cities will continue, especially because speculation is still evident in some regions - although the introduction of further control policies will be slowed down.

After a new round of increase in demand, the housing stocks in third-and fourth-tier cities have remarkably reduced, and because of the overdrawn demand in 2017, next year will see sluggish growth in demand. The macro-control policy has also facilitated the structural adjustments in the real estate sector, including fewer land transactions and new construction.