Shanghai’s mayor Ying Yong vows to continue stabilizing home prices in the city
Feb 01, 2019 (China Knowledge) - Shanghai’s mayor Ying Yong has reiterated that he will be doing all he can to stabilize the city’s housing market, ending any hopes that the city’s government would loosen property regulations in order to sustain growth in a slowing Chinese economy.
The comments by the mayor comes after Shanghai set itself a growth target of between 6% to 6.5% for 2019 earlier on Sunday which is lower than last year’s growth and is the city’s slowest projected growth since 1990.
In the past, the Chinese government had used its property market to stimulate growth when there were signs of a slowdown in the economy by coming up with policies to promote construction and stimulate home prices.
However, in mid-2015 to late 2016, home prices in the city surged to sky-high prices, leading to the Shanghai municipal government to introduce measures to curb price increases in order to prevent a property bubble.
Even currently, home prices in Shanghai are still unaffordable for many qualified professionals from other parts of the country and a weak home market is not strong enough of a reason for the municipal government to ease property cooling measures.
In fact, some officials also view the high home prices of Shanghai as a factor which affects its competitiveness, deterring some professionals and businesses from moving to the city.
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