CRI听力:Chinese Cities Adjust Property Regulations

Chinese central government has enforced curbs to rein in surging housing price about two years ago.

This week, Chongqing municipality is the latest one among some 40 cities across China fine-tuning property policies, with doubled upper-limit on low-interest loans.

Hunan province meanwhile has lowered down payment requirements for first-time buyers, offered favorable interest rates and cut transaction fees.

Some cities are implementing property tax breaks to attract home buyers.

Insiders say such policies could bring about positive impact on the market. Cheng Haoye is marketing research manager with 5i5j Real Estate.

"For example, 15 percent off in loan interest rate in Beijing could mean housing price lowered by nearly 7 percent for a 90 square-meter apartment between five or six ring road. Such policies can give substantial benefits to home buyers, for example, lower prices and stronger purchasing power due to favorable policies in bank loans."

However, according to financial economist Yi Xianrong with the Chinese Academy of Social Sciences, such measures won't make much difference in property market.

"There are no fundamental changes in national policies to curb housing prices.They are just fine-tuned policies. The housing price in general is still high."

Real estate is traditionally a key driver of China's economic growth, pumping money into construction and other industries. As the world's second largest economy shows signs of weakness, it is widely speculated that China's property market is to collapse, and the future is pessimistic. But Cheng Haoye says the situation is not that bad.

"The national market is quite good in the past two months, with 40 or 50 percent of increase in sales compared the same period of last year, though the average price is lower. The property market is not as dim as it is described."

Statistics show that China's housing prices have dropped for eight consecutive months, but sales in Beijing have increased more than 40 percent year-on-year last month, reaching the same level before strict purchasing controls.

For CRI, this is Li Jing.