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Holes in housing plan

China Daily | Updated: 2010-05-03 06:37

The central government may have cooled off the real estate market with its new policies for the time being, but more must be done to gain the cooperation of local governments.

The recent plunge in property trading volume in some major Chinese cities has persuaded many homebuyers to take a wait-and-see attitude. That's a good sign for now but it's very important to relieve consumer panic that has been a driving force behind unchecked gains in housing prices.

It doesn't help that the May Day Holiday could possibly fuel more panic when property developers seize on the chance to overwhelm potential homebuyers with aggressive advertisements. If policymakers want to successfully tether the housing bubbles, they must continue to roll out measures that clamp down on China's housing prices and that starts with recruiting the help of local authorities.

Holes in housing plan

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