China should expand home purchase restrictions to the entire country over the next three years, a government think tank said on Friday, underscoring official intention to cool sky-high property prices. The government has already ordered 35 Chinese cities to restrict residents from buying second or third homes, but the State Information Centre thinks the curbs should be broadened.
Worried near-record home prices could stir social unrest, China's government has steadily reined in the property market since late 2009. But with real estate prices still rising, albeit at a slower pace, investors expect more tightening to come. The China Securities Journal quoted the think tank as saying in a report that by expanding the restrictions, China can help its real estate market grow at a healthy pace.
The centre is a leading think tank that comes under the National Development and Reform Commission, China's top economic planner. Even though curbs could slow growth in the world's second-largest economy by reducing the number of homes sold, the think tank argued it would stabilise the house market in the long run by smoothening out spurts and slumps.
It argued the government can cushion a dive in the property market by building affordable housing on a large scale. The think tank suggested retracting the size of new homes bought by residents as well to prevent small families from buying large properties. It also called on the government to hasten the roll-out of taxes for home buyers across the country, having already unveiled the maiden property purchase tax in the cities of Shanghai and Chongqing.
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