By Wang Wei, DRC

2017-02-27

In the Central Economic Work Conference held in 2016, it was pointed out that houses are built for living, but not for speculation. In essence, we need to let houses reinstate their residential property. In line with this principle, we need to take diversified means and comprehensive measures to make regulations on real estate market in light of future development. More importantly, we need to, according to the national conditions, establish a basic system- and long-term-based mechanism adaptable to the laws of the market performance.

The development of China's real estate market has entered a new stage. This requires us to further study the development law of real estate market during this stage, and properly deal with the relations between real estate market development and long-term economic development, population structure changes and urban and regional economic development.

We need to attach great importance to the risks of real estate bubbles and study ways and relevant policies to resolve and prevent these risks, especially the correct approach toward the proper implementation of financial and land policies. At the same time, we need to conduct preparatory research on various policy measures to be implemented under different circumstances and strive to prevent the real estate bubbles from evolving into the financial and economic fields.

We need to speed up the establishment of a long-term mechanism for the stable development of the real estate market. 1. We need to flesh out the housing supply system and market system in line with the pluralistic, multi-level and diversified needs of the current housing market. 2. We need to reform the land supply methods and systems. 3. We need to promote the reform of housing financial system and fiscal and taxation system. 4. We need to enforce the supervision of the real estate market. 5. We need to enhance the coordinated development of real estate markets in different cities. 6. We need to straighten out the relations between the central and local governments in the real estate sector.