(Yicai Global) Nov. 22 -- China's Ministry of Housing and Urban-Rural Development, Ministry of Land and Resources and the People's Bank of China set the tone for future property market regulation at a symposium held yesterday, agreeing that supervision will not let up, Beijing Business Today reported.
The conference put forward more specific requirements on the implementation of regulation targets, such as ramping up financial management, preventing illicit use of funds in the real estate sector and managing the land supply by increasing the proportion of supply for rental housing. The consistency of policies will form a long-term mechanism for the property market and there will be no room for speculation, industry insiders said.
During the symposium, which took place in Wuhan, provincial capital of Hubei, the three departments stressed the previously outlined principle that a home is for living in, not for investments. The trio agreed that real estate risk should be effectively prevented and insisted on unshaking regulation measures to maintain policy consistency, guide market expectations and prevent price fluctuations.
The authorities in particular emphasized the need to strengthen financial management, balance capital allocation between the real estate industry and other industries, and prevent illicit capital inflow into the property market.
Several rounds of regulation have played a major role in curbing speculative investment in the housing sector and guiding demand for property. The annual growth rate of commercial housing sales in China dropped from 25.1 percent early this year to 10.3 percent over the first three quarters.
An excessive increase in housing prices has also come to a close. As of September, yearly growth of new house prices had fallen for 11 straight months in first-tier cities and nine straight months in second-tier cities. The figure in third-tier cities also fell 0.3 percentage points, data from the National Bureau of Statistics shows.