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Housing prices expected to drop in 2012

Updated: 2012-05-24 19:03
( Xinhua)

BEIJING - Housing prices are expected to drop slightly this year, according to a real estate industry report released by a government think tank on Thursday.

The Chinese Academy of Social Sciences claimed in its paper that there is "almost no possibility" of an increase in property prices this year.

The paper said first-time homeowners may not benefit from real estate market regulations, as falling housing prices may not counteract increased first-time buyer costs that have resulted from the implementation of new real estate industry regulations in 2011.

Authorities should move more quickly to formulate new property tax laws, as well as create regulations for the evaluation of property, the paper said.

But it ruled out the possibility of a nationwide introduction of the property tax in 2012, due to "technical reasons."

The paper said authorities will adjust housing purchase quotas in some cities, allowing residents in those areas to buy second homes. However, the quota will remain unchanged in the largest cities, such as Beijing and Shanghai.

The real estate market will continue to stabilize in 2012, with a relatively smaller volume of housing added and a slight decrease in prices, the paper said.

The paper analyzed the mechanism used to manage low-income housing, finding inefficiencies in the funding and constructing of homes.

Special institutes and employees will be employed to improve supervision and operations for low-income housing, the paper said.

The paper forecast that house values would fall this year prompting owners of multiple houses to sell.

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