China to limit land available for homes

Byjirong

Updated Tue, 23 Feb 2016 14:57:42 GMT

According to the latest Reuters report, China will stop or reduce issuing land for new residential housing projects in areas where there is a supply excess. This move is the latest in a series of measures intended to clear a property overhang weighing on the economy.

China's land ministry will not release vacant land to commercial property developers in cities and other areas where there are large levels of unsold inventory.

China has recently announced a list of measures intended to boost the housing market, a crucial driver of the economy. Real estate investment affects more than 40 other sectors in China, from cement to furniture.

The finance ministry announced on 19 February that it would lower transaction taxes for second-time home buyers and some first home buyers in many cities. This announcement followed a 2 February call for a further reduction in the minimum down payment required for first- and second-time home buyers in most cities.

China had 718 million m2 of unsold commercial and residential housing space at the end of 2015, a 15.6% increase from the year before.

Growth in property investment eased to 1% in 2015, the slowest in nearly seven years.