China's Property Prices to become more Transparent

[mcmlxxvi]

The regulations are aimed at making prices more transparent to protect both consumers and property sellers, it said, as concerns grow throughout the country at an increasing lack of affordable housing. -- PHOTO: REUTERS

SHANGHAI - CHINA'S economic planner told developers and real estate agents on Tuesday not to use underhanded means to sell property, as Beijing continues efforts to cool the country's real estate market.

Anyone trying to sell a property 'must not use false or nonstandard price labels to mislead property buyers", the National Development and Reform Commission (NDRC) said in new rules that take effect on May 1.

The regulations are aimed at making prices more transparent to protect both consumers and property sellers, it said, as concerns grow throughout the country at an increasing lack of affordable housing.

China's property developers often lure buyers a several tactics, including touting only the lowest priced unit in residential projects.

Other typical practices include deliberately marking up prices and offering subsequent 'discounts' to create the impression buyers are getting a good deal.

Some developers also hype up prices by withholding some units to create the impression that newly opened buildings are selling fast and should be snapped up quickly. -- AFP

[Condo Kaiser]

I think all these small measures does not affect prices that much, just regulations to make the market place more efficient.

But their latest 5 year plan on building millions of subsidised housing is the big gun, if they actually go ahead and pull off something like HDB in Singapore, then private home prices will have to drastically drop.

But i think chinese govt will have to carefully caliberate the rate they build these houses so as to not crash their market.

[mcmlxxvi]

I think all these small measures does not affect prices that much, just regulations to make the market place more efficient.

But their latest 5 year plan on building millions of subsidised housing is the big gun, if they actually go ahead and pull off something like HDB in Singapore, then private home prices will have to drastically drop.

But i think chinese govt will have to carefully caliberate the rate they build these houses so as to not crash their market.

They did specify its only for the underprivileged or needy. Anyway from the way policies get duplicated or echoed between Singapore and China, it appears that both governments are having significant mindshare much more than appears to be.