Real estate not a nonstop economic engine

AT THE JUST CONCLUDED Central Urban Work Conference, which was presided over by President Xi Jinping on Sunday and Monday in Beijing, it was decided to roll out measures to reduce the country's unsolved property inventory and stabilize its ailing housing market. Property developers will also be encouraged to change marketing strategies and "properly" reduce house prices. Xinhua News Agency says these decisions will help regulate the real estate industry and curb the money-power exchanges between local officials and property developers:

For years, many local housing markets have been stuck in a dilemma. On the one hand, house prices keep rising so property developers have been overly keen on building houses. On the other, residents have found it increasingly difficult to afford an apartment, dealing a heavy blow to domestic demand and leaving a considerable number of housing units vacant.

Luckily, the central government is paying more attention to reducing the inventory of unsold apartments, in the hope of keeping the industry healthy and sustainable. However, there are still some property enterprises that want local governments to rescue the sluggish market as they have done in the past.