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Speculation has pushed home prices in Beijing too high, and rising social tensions pose enormous challenges to the capital's stability, Xinhua reported, citing the Beijing Municipal Committee. Beijing looks to develop a long-term mechanism to stem speculation.
More than a dozen Chinese cities including Tianjin, Shanghai, Guangzhou and Shenzhen have taken measures to curb property speculation, which was likely fueled by easy credit. Beijing on Sept. 30th announced a requirement for higher down payments on property purchases.
Average new home prices in Beijing slowed for a second consecutive month in November following cooling measures taken by the government. Average new home prices in Beijing rose 26.4 percent in November from a year earlier.
China will impose strict limits on credit flowing into speculative buying in the property market in 2017, top officials said at an annual economic conference earlier this month. A slew of property curbs introduced this year in China's biggest cities are likely to be extended through 2017, a government think tank was reported as saying on Monday.
