SHANGHAI: China's Ministry of Housing and Urban-Rural Development has told local governments not to relax its home purchase restrictions even though some of the controls are expiring at the end of the year, the China Business Journal reported on Saturday.
China's central bank cut the reserve requirement ratio for its commercial lenders this week for the first time in nearly three years in a shift towards easing policy.
The paper said the restrictions on home buying will continue despite the fact that they are in at least 11 cities set to expire at the end of the year.
The paper quoted an unnamed government official with the ministry as saying China's current property controls of restrictive home buying will not change.
Apart from monetary and tax measures, China's heavy controls on the number of homes each family can buy, regardless of whether they can afford it, are seen by the market as the most effective tool in curbing transactions and cooling prices in around 40 cities where such restrictions have been imposed.
On Friday, China's central bank said Chinese home prices were at a turning point. Chinese home prices fell in October from September for the first time this year, official data showed, but a private survey has indicated that November could mark a third consecutive monthly fall.
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