In a continued effort to curb the red hot real estate market, the central government of China has vowed to punish shady property developers, as well as ordered local officials to curb rising land prices.
A statement from the Ministry of Land and Resources said that high property prices in some Chinese cities had led to rising concerns and the situation has become “complicated”.
The country is expected to raise interest rates soon to cool down property prices and curb inflation. Consumer prices surged 5.1 percent last month, the fastest pace in more than two years.
“Local land authorities should pay high attention to this… and firmly curb the overly fast growth in land prices,” said the ministry, adding that it would strengthen its crackdown on speculation and land hoarding. He said that cities that have not provided enough space for low-income housing will not be allowed to sell land sites for luxury housing developments for the rest of the year.
The ministry also said that local officials must inform the Ministry of Land and Resources about any property that is sold at over 50 percent its asking price, and any that is sold at a record price. Any developers that build luxury properties on a land site initially proposed for public housing would have the land repossessed and their income confiscated.
Despite the government’s cooling measures, land prices in the country continue to grow. According to official data, property prices in 70 major cities rose 0.3 percent month-on-month in November, up 7.7 percent over the same period last year.
A top government think tank said that land disputes were the most volatile social problem in rural areas, as official property seizures in the rush to cash in on the property market have sparked unrest.