Ten Million people to benefit from new Chinese reforms as six Million homes earmarked for in 2017
By Abu BakarrKargbo
Wang Guoqing, spokesperson for the fifth session of the 12th Chinese People’s Political Consultative Conference (CPPCC) National Committee has disclosed that policy measures so far put in place by the government will alleviate the sufferings of ten million people in China this year. Addressing Journalists last Thursday, Guoping said government’s intervention in the economic front is becoming watertight on a daily basis, and added that the country is currently enjoying a stable economy that is making constant progress. “We will strive for greater progress and will make concrete effort to deepen reforms.
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Our pace will be steadier and move forward,” he assured.
The CPPCC Committee Spokesman said the Government of President Xi Jinping will focus on building a close and clean relationship with the business sector and will bring about a new mindset for more businesses to thrive. “We will focus on various sectors to better the lives of our people,” Guoqing said.
The country’s Minister of Housing and Urban-Rural Development, Chen Zhenggao revealed that China will build 6 million new homes for residents of shantytowns before the end of 2017. The Chinese central government started a three-year project to rebuild urban shantytowns in 2015, aiming to construct a total of 18 million new homes in all. In 2015, construction began on 6.01 million new dwellings, and another 6.06 were started in 2016.
According to Chen, the Ministry of Housing and Urban-Rural Development (MHURD) kicked off this year’s shantytown transformation work on Jan. 16. The central government has provided 224.3 billion RMB in subsidies for the work in 2017, an increase of 15 billion RMB compared with last year.
China is determined to reconstruct all of its existing shantytowns by 2020. MHURD is working with relevant departments to conduct a thorough investigation and make the planned transformation a reality.
China’s property tax, which is still in the pipeline, will have a modest impact on China’s runaway housing prices in big cities by preventing major speculations, an economist told this press.
“When implemented, the property tax will help stabilize housing prices and keep unbridled speculations at bay,” said Jia Kang, a tax expert and member of the Chinese People’s Political Consultative Conference (CPPCC), the country’s top political advisory body.
The world’s second largest economy is seeking to maintain stability in the property market after the roller coaster ride of 2016, with measures including higher mortgage down payments and greater home purchase restrictions, to prevent surges in metropolises and the growing inventories in smaller cities.
“Houses are built to be lived in, not for speculation,” Chinese President Xi Jinping said at a meeting of the Central Leading Group on Finance and Economic Affairs on Feb. 28.
Prices of new homes in China surged 12.4 percent last year, the fastest rate since 2011, leading more than 20 cities to introduce property restrictions to cool the market since October.
Xi called for a long-term mechanism to ensure market stability, with improved policies to stabilize home buying, guide market expectations and enhance land supply systems.
With relatively low costs to hold properties, many investors tend to purchase multiple houses and keep them off the market in hopes of further appreciation, which drives up housing prices in major cities wrestling with tight supply.