Soaring Home Prices Still Out of Control in China
The National Development and Reform Commission's (NDRC) policy to have 70% of all new homes be less than 90 sq m has failed.
Stricter measures are promised.
Only 24.73% met the criteria, up from 21.16% but far below the target.
Investment in real estate increased by 29%.
Housing salses increased by 31%.
House prices rose, "by 5.4 percent, 6.4 percent, 7.1 percent, 7.5 percent and 8.2 percent year on year respectively from April to August."
Shenzhen and Beijing saw prices go higher than 10% in each of five months.
Local governments not following through are to blame says the NDRC.
Monetary and taxation polices have failed.
Land set aside for building had not been developed.
Dips in the stock market caused some investors to shift their focus to the real estate market.
The NDRC is prepared to buckle down and make lending and taxation policies more 'targeted' at stabling prices for homes.
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