China Property Digest: Curbs to stay in 2013

Mon Dec 31, 2012 10:00am GMT

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BEIJING Dec 31 (Reuters) - China's home prices rose in November from a month earlier as stimulative policies from Beijing underpinned demand despite property purchase restrictions in place since early 2010.

Critics have said Beijing must use market instruments such as property taxes to control home prices, not ad hoc controls such as restrictions on the number of homes Chinese can buy.

Property investment accounted for 14.4 percent of China's gross domestic product in the first nine months of 2012.

Here is a look at the latest news, numbers and more from China's real estate market.

REUTERS NEWS

Dec 26 - Trading in shares of China Vanke Co Ltd , the country's biggest property developer by sales, were suspended from Wednesday pending an announcement, the firm said late on Tuesday.

Dec 25 - China will extend its property controls into 2013 to choke speculative buying while expanding a trial property tax, the official Xinhua news agency reported, citing the country's housing ministry.

Dec 24 - Chinese officials will this week discuss improving compensation for farmers whose land is expropriated, state media said, a move designed to try to quell growing rural anger over forced land seizures.

DATA

- China aims to start building 6 million public homes next year and finish construction of 4.6 million, the Ministry of Housing and Urban-Rural Development said.

- Chinese developer Poly Real Estate clocked over 100 billion yuan ($16.05 billion) worth of sales for the year to Dec 21, ranking it as the No. 2 developer by annual sales volume after Vanke.

- China's home prices may rise 7.8 percent in 2013 from a year earlier, according to data from the private consultant China Real Estate Index System.

- Idle land due for development reached 11,000 hectares at the end of November, of which 7,461 hectares are set aside for residential construction, data from the Ministry of Land and Resources showed.

CHINESE PRESS

Dec 28 - China's real estate sector is likely to pick up steam in 2013, industry observers said, due to growing market demand. (Xinhua News Agency)

Dec 25 - City authorities in Tianjin sold a land parcel at a record price of 4.62 billion yuan at an auction with a 25 percent premium to its starting price. (Beijing Youth Daily)

Dec 24 - False signs of panic home-buying in Beijing were created by some developers to mislead prospective buyers, officials from the city's commission of housing and urban-rural development said, noting that the property market was stable. (People's Daily)

Dec 21 - China's Ministry of Housing and Urban-Rural Development is investigating the property market and industry watchers expect policymakers to launch new controls soon.(China Securities Journal)

Dec 20 - Authorities in Beijing have decided to suspend plans to sell a land parcel expected to be sold at record prices due to its prime location. (Economic Information Daily)

THEY SAID

-- "For cities that have relaxed property restrictions to promote a sharp rise in home prices, we will continue to take measures (against them)." (Jiang Weixin, the housing minister said in a recent meeting)

-- "Property developers are inclined to set higher prices for their new projects due to rising land prices and premiums." (Zhang Dawei, a head of research at property consultancy Centaline in Beijing, was quoted as saying by the official People's Daily) ($1 = 6.2286 Chinese yuan) (Reporting By Xiaoyi Shao and Aileen Wang; Editing by Nick Macfie)