Insider: Fix-price rules on homes need specific regulations

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A new regulation from China's top economic planner took effect on May 1st. It requires home developers to sell homes at clearly marked prices, and is aimed at cracking down on property price fraud.

As required by National Development and Reform Commission, developers must now reveal home prices on advertising boards and brochures. Local authorities are asked to put the prices on record. Developers are required to file an application if they want to raise home prices. It's part of the latest moves China is hoping will help regulate the country's runaway property market.

But in Shanghai, there seems to be a compliance issue. No prices are shown on boards. Homebuyers are given the price lists to view only when they request to do so.

Industry insiders say the situation is largely due to unspecific regulations.

Xue Jianxiong, Department Director of China Real Estate Information Corp. said "Many developers reveal prices to buyers only on the day the project is opened. Consumers can look at price lists if they are considering buying properties. So I think the government's measures should be more flexible to prevent this kind of issue."

Industry insiders also say it's likely property prices will still go up despite the new policy.

Xue Jianxiong said "Developers have many ways to get around the new policy and property prices will still rise. For example, a home is priced at 20,000 yuan per square meter but they can report it to local authorities at 25,000 yuan. In this case, there is room for future price hikes."

NDRC is well aware of the current situation, and says large-scale investigations are ! on the w ay. Developers will face serious penalties if they are found in breach of the new measures.

Editor:Xiong Qu |Source: CNTV.CN


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