Housing policy faces uncertain future

China's preferential policies for property loans are due to expire at the end of the year. Many prospective home buyers are concerned about the policies' uncertain future, but some local governments have pledged they will continue next year.

The central government unveiled its preferential policies to boost the real estate market at the end of last year. The policies cut transaction taxes and the interest of property loans.

Most of them are planned to expire at the end of this year. But some of China's local governments including Jinlin, Anhui and Inner Mongolia have expressed their support of extending these policies to the end of next year.

Senior economist in the National Bureau of Statistics, Yao Jingyuan, suggested the policies are likely to carry over to next year.

But the Ministry of Housing and Urban-Rural Development has countered this. Reports attribute a department official saying China's rebounding economy could prompt preferential policies to be withdrawn at the end of the year.

Regardless of whether the policies continue or not, housing prices remain the biggest concern.

Zhao Qiang, Employee of CITIC Bank said "I think the biggest concerns for property buyers are housing prices and loan interest rates. "

Du Meng, Real Estate Developer said "Even if the government issues policies to control the surging housing price, developers should not worry. The slowing price increase will benefit most residents."

Banks have begun tightening credit for property loans. Many lenders have extended the checking period from one week to two weeks or even longer.

Impact on market

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