State Council's "Eight Recommendations on Housing"

From Zhongguo Qinggongye xinxiwang (China Light Industry Newsnet), 18 April 2005.

At the end of March, an executive meeting of the State Council debated and passed the "State Council Main Items of Work in 2005". The meeting stressed the vital significance of strictly controlling real estate and the scale of urban construction to preserve beneficial momentum
of economic development as a whole.

The State Council has already issued a high level notificiation concerning practical measures to stabilize housing prices. Insiders state that there were altogether eight opinions. It explicitly pointed out that due to massive increases in housing purchases for investment, speculation etc., on the part of some localities, housing prices had risen too quickly in some areas, with impact on stable economic and social development. The "Notification" requested local authorities and relevant departments to curb excessively quick price rises, and promote healthy
development of the real estate market.
The "eight opinions" are:

(1) give the highest attention to stabilizing housing prices;

(2) take practical responsibility for it: housing prices should be elevated to the political level and a government responsibility system set up, giving provincial government overall responsibility,if housing prices rise too fast and are not vigorously controlled the responsibility of those involved will be investigated;
(3) vigorously adjust the supply structure of housing and usable land, increase the supply of ordinary commercial apartments and of land for rental housing, and supervise its construction;
(4) the strict control passive demand for housing, mainly controls the amount of relocation;
(5) correctly guide residents\' reasonable consumer demands;

(6) comprehensively monitor the operation of the real estate market;

(7) positively implement all policy measures to regulate supply and demand of housing;
(8) earnestly organize supervision inspection housing price stabilization work.