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          Shanghai to roll out 3-year realty control plan

          (chinadaily.com.cn)
          Updated: 2007-07-25 14:25

          After investigating the real estate industry, the Shanghai Municipal Government plans to draft a three-year plan on real estate control, said Jiao Yang, spokesman of the government.

          Jiao explained the government plans to keep a close eye on Shanghai's economic development, including new land for construction, the number of houses on sale, houses under construction, and houses just approved by the government.

          Combining the data collected with the real estate development cycle, the government is to establish a plan on land supply control between 2007 and 2009, he said.

          Statistics showed that of all the land okayed between January 2006 and June 2007 by the government, 2,000 hectares were for residential purposes. Meanwhile, the second half of this year another 1,000 hectares of land for residential housing will be approved, with some of them being intended for the low-end market, Jiao said.

          The government also attaches great importance to boosting land use efficiency and curbing constructional land increase by decreasing house inventory and linking it to land supply.

          Ten relevant government departments, including the Shanghai Municipal Development and Reform Commission, Shanghai Municipal Bureau of Finance, Shanghai Municipal Supervisory Committee, Shanghai Municipal Administration of Industry and Commerce, and Shanghai Municipal of Housing, Land and Resource Administration, have worked together closely this year to control the real estate industry.

          Special rectification is under way in the industry and houses are to undergo strict inspection before hitting the market.

          Cai Xuchu, chief economist and spokesman of the Shanghai Municipal Bureau of Statistics, said supply in the real estate industry was on the rise in the first half of the year while prices remained stable.

          Statistics show that in the first half of this year, investments in Shanghai’s property development grew 6.2 percent from a year earlier to about 62 billion yuan (US$8.2 billion), 63.7 percent of which were spent on housing.

          After implementation of controls on both demand and supply, the ratio of investment in real estate to total fixed asset investment remain stable, Cai added.

          At the same time, in the first six months of this year Shanghai sold a total of 15 million square meters of commodity houses, 25.7 percent more than last year.


          (For more biz stories, please visit Industry Updates)

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