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China to keep property market 'stable and healthy': official

(Xinhua) Updated: 2014-12-19 15:10

BEIJING -- Chinese Ministry of Housing and Urban-Rural Development (MOHURD) vowed on Friday to keep the country's real estate market "stable and healthy" in 2015.

MOHURD minister Chen Zhenggao said at a national conference on housing and urban-rural development that the ministry will actively deal with new situations and problems in the property market since the sector still plays a significant role in China's economy.

"On one hand, macroeconomic performance influences the property market. On the other hand, changes in the market, to some extent, affect the Chinese economy," said Chen.

He said the market potential is great as many new city dwellers do not own homes and many urbanites long for better housing.

The minister announced at the meeting that China will begin construction of seven million apartments under the affordable housing program in 2015.

Chen said the country will also push forward its shanty town renovation program as "it will not only improve people's livelihood, but also spur economic growth."

China's property market cooled down in 2014 partly due to tight government control. But authorities loosened their grip to avoid a sharp slowdown in the sector by cutting restrictions on home purchases, easing mortgage rules and lowering benchmark interest rates.

 

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