Property curbs working to potential

Lanzhou, capital of Northwest China's Gansu province, has reportedly eased the property tightening policy in some of its districts despite local authorities' denial previously, raising public concerns that such measures could be eased nationwide.

If the authorities impose property tightening measures in areas where real estate transactions are not very high, the measures, instead of curbing housing prices, might have a negative impact on even genuine homebuyers as opposed to speculators. The Lanzhou authorities have eased the restrictions on housing purchase policy only in those districts where few people buy houses, not in the areas where the demand for property is high.

The restrictions were imposed to curb soaring housing prices. So they should be lifted after the rise in housing prices is curbed, or declines. In major cities where the housing demand still exceeds supply, the tightening policy continues to be in force.