SHANGHAI — Officials in some provincial governments in China have already been given warnings by the central government that they are not adhering strictly enough to curbs and policies introduced to keep property prices in check.
According to reports, 16 inspection teams sent out in July to check whether policies were being followed are back in Beijing after gauging the scale of the recent property price upturn as a result of lax implementation of government policy.
The investigators are believed to be preparing their reports, and these are expected to shape future property policy, which is now widely predicted to see some further tightening.
The sending out of inspection teams was the result of what many are calling China’s property market spring, which has seen prices in some major cities, including Shanghai, Guangzhou and Beijing, showing early sign of a sharp U-turn.
According to a report in Shanghai Securities News, citing a source close to a member of the teams, the central government has now given warnings to some local authorities who were found not to be following the original guidelines, with the aim of maximizing revenue from land sales.
The source said the inspection teams had been told that their main task was to ensure they strengthen the property market curbs already introduced.
The checks focused particularly on implementation of purchase controls, loan policies, land supply and management, taxation and tax management.
But he added that if housing prices continued to rebound, new policies will be introduced soon.
In a commentary yesterday in the Financial News, a newspaper published by the central bank, government officials were reported to be cautious about the possibility of cutting the reserve requirement ratios for banks, because it wants to keep the “spigot of funds” for real estate industry tight.