China housing ministry calls on cities to adjust residential land supply

[BEIJING] China's housing ministry has called on cities with large unsold housing inventories to reduce or suspend land supply for residential housing.

The notice said that cities with unsold housing inventory equal to more than 36 months of sales should suspend the supply of land for residential development.

But for cities under pressure from rising home prices, they should increase residential housing land supply, said the notice jointly issued by the Ministry of Housing and Urban-Rural Development and the Ministry of Land and Resources. The notice was dated April 1, but released publicly on Thursday.

The Chinese government faces the dual challenge of controlling rising home prices in the largest cities where prices are too expensive for many residents, while also encouraging sales and supporting prices in smaller cities that face a massive glut of unsold homes.

REUTERS