Property price controls boost financial stability

A number of Chinese cities have extended or rolled out new measures to control property speculation, in a move that will help the country control its debt levels and maintain economic and financial stability.

Chongqing and six provincial capitals, such as Changsha of Hunan province and Shijiazhuang of Hebei province, have renewed their real estate price control measures prohibiting newly bought properties from being resold within a certain number of years, and some lower-tier cities have introduced similar measures to curb speculation.

Over the past decade, the country's property prices have soared despite price control measures. Speculative purchases have created a cycle of ever-escalating prices that has prompted more people to buy. As a result, this has pushed up prices encouraging even more speculative buying. In some major cities, such as Beijing, prices surged more than tenfold in many districts.