 The central government has recently asked provincial governments to assume overall responsibilities in housing security, housing supply and house price stability, under their respective jurisdiction.
Will this action help regulate the housing market? Trevor will bring us details on how opinions have varied regarding this issue.
People look at models of a real estate project in Beijing. [File Photo: cnsphoto]
A comment section in the Dahe Daily welcomes the action and believes it won't hinder the healthy development of the market economy, as some people fear.
First of all, the comment argues the dramatic raise of house price itself is a result of abnormal marketing operation. To some extent, it is being pushed up by the local government. So the central government needs to take action. Secondly, even if the market rules do work here, the unaffordable house price is unacceptable and unreasonable. The government has to intervene to protect the order of the market economy. Thirdly, housing problems are a fundamental matter of livelihood. The government should take its responsibility and not let the market runs totally according to its own way. The authors urge local governments to follow the introduction with no hesitation, because it's vital for the smooth development of society.
The China Economic Times carries an article saying that the accountability system in China is not effective enough. This is because the GDP-centered achievement evaluation system has not been changed, and there are no listed punishing measures for the accountability system, with cities usually finding ways to resist policies they don't like.
Now the central government has made clear the responsibility of local governments. The key lies in a system to guarantee the local government's accountability for the area of their jurisdiction, but which nonetheless isn't democracy. There must be set of standards to judge their work, and also what consequences they have to take if they fail in their job. In this way, the government can stabilize the house prices and ensure the house supply.
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