China will take measures to curb the rapidly increasing housing prices, including introducing a strict mortgage loans policy for second homes, said Jiang Weixin, minister for Housing and Urban-Rural Development. It is understood that "family" is strictly identified as the unit for the second home standard.

It is the first time the Ministry has clearly outlined its policy on second homes, making a statement at the National Construction Work Conference held in the middle of December, 2009. "We should continue to make comprehensive use of land, credit, taxation and other means to strengthen and improve regulation towards the real estate market," Jiang said.

Jiang also expressed that China would maintain the support for housing consumption for those residents who need houses for themselves, and at the same time would strengthen the supervision on mortgage loans for second homes so as to curb speculative purchasing.

"Not long ago, related officials discussed the credit issue of second homes with local financial institutions, and put forward the identified standard with family as the unit," an industry insider in Hangzhou said. Shanghai has already introduced strict identified rules for 2nd homes.

In addition, the Ministry indicated that it would increase follow-up investigations in the hot spot cities with rapidly rising house prices and put forward measures in response to new situations and new problems. This seems to indicate there may be "targeted" policies in some cities in the future.

"To increase housing supply", especially low income housing supply, is another highlight of this statement from the Ministry, especially for the supply of low income housing.

Under the premise of guaranteeing quality, we will significantly increase the construction and supply of low-priced, small and medium dwelling size ordinary commodity housing, Jiang said.

Editor: Charlie

Source: People's Daily Online