China is considering removing a price limit for local governments buying unsold apartments, in a move to accelerate the clearance of millions of empty homes, Bloomberg News reported on Thursday, citing people familiar with the matter.
The world’s second-largest economy is dealing with prolonged property sector crisis with home prices expected to drop at a faster pace this year despite measures from the government.
Under the proposal, local authorities across the country will no longer be subject to a price ceiling equivalent to the cost of affordable homes in the same neighborhood, the report said.
The move will ease financial burden for developers and will give officials greater freedom in offering competitive prices, the Bloomberg report said.
In an effort to stabilise its crisis-stricken property sector, China took “historic” steps last year, including urging local governments to purchase unsold homes from heavily-indebted developers.
Source Homevior.in
