Property curbs to stay in bid to check prices

Property price controls will be maintained, Premier Wen Jiabao vowed on Wednesday, in response to a rebound in the real estate market in some cities.

The latest policy signals government determination to curb prices amid a recovery in the property market across the country in the past few months, industry experts said.

The State Council decided in a meeting chaired by the premier to keep curbs on the purchase of residential housing for investment purposes and to expand the scope of the trial property tax.

There was a massive surge in the amount of residential floor space sold during the Spring Festival holiday week.

Tracking by the China Index Academy, a real estate research body, saw 21 of 27 cities monitored register sales of floor space more than five times the area of the corresponding holiday week last year and at higher prices.

The National Bureau of Statistics reported in December that 40 of China's 70 major cities saw property prices rise from the previous year, compared with 18 cities in November and 14 in October.

Policies to curb housing prices, introduced in early 2011, will have to be strictly followed, the State Council said.

Smaller cities will also see curbs to cool rising prices, it said.

Potential homebuyers check property prices at a real estate fair in Hangzhou, Zhejiang province. Long Wei / for China Daily