Chinese State media warns of renewed property speculation despite heavy curbs

The Xinhua News Agency said on Thursday that signs of property speculation have reemerged in some parts of the country, urging local governments to rein in home prices more effectively.

Xinhua said that about 200 property tightening rules – a record high – were introduced across the country in the first half of this year, but that demand was still high in cities with relatively low property prices.

Some people also took advantage of new talent policies to qualify as local buyers, skirting existing curbs targeted at outof-towners.

“Local governments, as the primary party tasked to tame the market, must shoulder their responsibility as such,” Xinhua said, urging regional policymakers to improve regulations and put an end to introducing simple “stop-gap measures.”

It also said that local governments should change their economic development models and curb their thirst for land revenue.

China’s new home prices accelerated to their fastest pace in almost two years in June.

The surprising resilience has highlighted market loopholes and the still-strong buyer demand after 38 straight months of price gains, even as regulators have been introducing waves of tightening measures to cool the market since 2016.

It also presents a challenge for Chinese policymakers seeking to contain risks in a relatively strong part of the economy, as the worsening USChina trade dispute clouds the outlook for other sectors.

Xinhua also said that China is moving fast to roll out a property tax, as well as complementary reforms in fiscal, land and financial areas, but gave no details.