房地产新政).pdfVIP

CHINA’S “NEW DEAL” MEASURES TO COPE WITH ITS BUBBLING HOUSING MARKET LU Ding HUANG Yanjie EAI Background Brief No. 544 Date of Publication: 23 July 2010 Executive Summary 1. Since December 2009, China has implemented a series of policy measures dubbed by the media as the “New Deal in Housing Policy” (fangdichan xinzheng , 房地产新政), to cool down the housing market. 2. For retail buyers, the New Deal is a combination of mortgage restrictions, purchase quotas, and extended waiting period for resale to curb individual housing purchase for investment or speculative purposes. 3. For institutional players, the New Deal tightens regulations and imposes financial restrictions to discourage or prevent developers or government- linked companies from purchasing land for hoarding or resale. 4. The monetary policy has also been tightened to increase investment cost and the government has pledged to increase the supply of housing, especially low- cost housing. 5. The New Deal was formulated to ease social and economic tensions caused by the steep rise in housing prices, especially in major cities. The emergence of a property bubble has been evident by various gauges. 6. The emerging property bubble has been a threat to macroeconomic stability and financial security. It also frustrates and incenses people (especially the young and newly immigrated urban residents) who aspire but have yet to become home owners. 7.