China’s annual session of the parliament ended Thursday. According to the article, policy-makers have paid minimal attention to the property market and its skyrocketing prices. Premier Li Keqiang was asked directly whether there were any new policy measures planned that might affect the property market. His short answer about ending speculation and building more affordable homes was far from being concrete. The article suggested that the leaders are signaling less intervention in the property market in order to boost the economy, since the property market is a key component of economic growth.
In fact, the government has taken multiple measures in curbing prices, like introducing property tax that is now on trial in Shanghai and Chongqing, and increasing interest rate of mortgages many many times. But the results are less than satisfying. Finance Minister Lou Jiwei once remarked that the tax on home sales only led many people to divorce just to avoid paying it. I wonder if the leaders are really being soft on the property market or they are just tired of carrying out ineffective measures to curb the price.