China to launch nationwide inspection of real estate irregularities

BEIJING - China's housing regulator will launch a national campaign to crack down on malpractice by real estate agents and developers, to standardize the country's property market.

From the beginning of July to the end of December this year, 30 cities, including Beijing, Shanghai, Guangzhou and Nanjing, will be inspected for real estate irregularities, according to a notice jointly issued by the Ministry of Housing and Urban-Rural Development and other six central departments.

Irregularities include fabricating information on housing sales, publishing fake advertisements and artificially inflating housing prices, market manipulation and hoarding unsold homes.

Local authorities are required to act strongly against monopolistic practices, providing false certificates and illegal housing financing tools.

The public is encouraged to join the supervision, and irregularities will be punished severely.

During previous years, rocketing housing prices, especially in major cities, have fueled concerns about asset bubbles. To curb speculation, local governments passed or expanded their restrictions on house purchases and increased the minimum downpayment required for a mortgage.

With a flurry of property market controls, authorities have demonstrated their will to keep a lid on housing prices. Over 40 cities unveiled a total of 50 property market regulations in May, a monthly record for frequency, according to Centaline Property.

The government is working on a long-term mechanism for property regulation that will ensure sustainable and stable development of the real estate market.