Home prices in China are seen stabilising amidst the beginning of traditional peak season which begins this month pushing forward the month of October.
Government analysts are downplaying fears that home prices are about to rise with the on-set of the buying season in China as first-time home buyers are eager to take advantage of some good price deals offered by some real estate companies.
The China Index Academy data showing a 0.24% growth in new house prices in 100 major cities from July to August.
Reports by the state-owned Xinhua News Agency indicated that home prices will be kept low as cooling measures are in place.
“With the government working to boost supplies and market demand becoming more modest after a buying spree that has lasted since March, property prices will remain stable in September and October, the traditional peak season for home sales in China,” said Gu Yunchang, deputy head of the China Real Estate and Housing Research Association.
Mr. Gu further explained that currently there is still persisting buyers fatigue and the cooling measures still in place to keep prices at bay.
State Council moves
The State Council announced that investigative teams will be sent out later this week to check on these property sweeteners to encourage buyers in spite the restrictions.
To "further ensure that the property regulation measures are implemented, speculative housing demand is curbed, and to strengthen the effects of the property regulation measures", the State Council said in a statement.
The State Council wants the tax policies, differential credit, housing purchasing limits, and the supply management in 16 city and provincial municipalities thoroughly checked by the said teams.
Local authorities in Beijing, Shanghai, Tianjin, Hebei, Chongqing, Zhejiang, Fujian and Jiangsu are to cooperate in the said investigation.
This Council, the highest policy-making body in China, has been convinced that some property measures put in place to burst the market speculations had been eased due to the added pressure on city coffers compromising project budgets.