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Guangdong Sets Tougher Housing Policies

The Guangdong government decided to implement land control, financial and tax policies to strengthen the real estate sector's guidance and management.

The provincial government has asked municipal and district governments to stop giving land to property developers building villas. It has also asked housing developers to build more ordinary and low-priced economy houses as early as possible.

The policies are in response to a recent notice by the State Council requiring governments at different levels to maintain house price stability in the face of the rising house market.

The provincial government will increase planning in real estate development to improve the structure of commercial housing supply and reduce the size of residential relocation for civil work projects.

Governments at municipal and district levels have been asked to help poor families find affordable houses in urban areas within three years, build more low-rent houses and increase housing subsidies to ensure a sufficient supply of medium- and small-sized homes.

The provincial government will also enforce strict land supply management, demanding local governments and related departments to strictly follow the land use quotas for commercial houses.

The provincial government will also tighten the scale of industrial parks and other large-scale civilian projects that require people living nearby to move. The total relocation scale is not allowed to exceed the amount of last year.

Local governments are required to promote housing accumulative funds and housing subsidy reforms to encourage individuals to buy commercial buildings.

(Shenzhen Daily April 29, 2005)

Government to Enhance Control
Property Loan in Commercial Banks Checked
Real Estate Prosperity Index Slightly Down
Economists Suggest Tougher Property Policies
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