Economists call for various market curbs
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Both experts agreed that instead of simply stopping people from buying new homes, the government should increase supply to meet the strong demand, especially increasing supplies of affordable housing and low-rent homes.
According to Zhang, the government should not interfere much with the price trend in the market of commercial housing. "It goes against the market economy and free trade," he said.
But the government is responsible for ensuring supply so citizens can have comfortable homes, therefore, it should build a "multi-level housing supply system" emphasizing a balance of low-rent housing, affordable homes, and commercial residential housing, Zhang said.
When Chinese citizens can buy good quality affordable homes or low-rent apartments, there will not be so much demand in the commercial housing market, and prices will eventually fall, said Wang.
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