Circular of the General Office of the State Council on Distributing the Opinions of the Departments Including the Ministry of Construction on Adjusting the Housing Supply Structure and Stabilizing the Housing Price

Circular of the General Office of the State Council on Distributing the Opinions of the Ministry of Construction and Other Departments on Adjusting the Housing Supply Structure and Stabilizing the Housing Price

Guo Ban Fa [2006] No. 37

May 24, 2006

The People's Government of provinces, autonomous regions and municipalities directly under the Central Government, and ministries, commissions and subordinate institutions directly under the State Council,

The State Council has given consent to the Opinions on Adjusting the Housing Supply Structure and Stabilizing the Housing Price jointly promulgated by the Ministry of Construction, the National Development and Reform Commission, the Ministry of Supervision, the Ministry of Finance, the Ministry of State Land and Resources, the People's Bank of China, the State Administration of Taxation, the National Bureau of Statistics, and China Banking Regulatory Commission, which are now distributed to you for your earnest and careful implementation.
Real estate is an important pillar industry at a new development stage of our country. The guidance and promotion of the sustaining stable and sound development of the real estate industry is conducive to maintaining the steady and quick growth of the national economy, meeting the basic demands for housing consumption of the broad mass, and realizing the goals of full construction of well-off society. At present, market guidance, adjustment and regulation need to be further strengthened and pointed to the problems existing in the development of real estate industry. According to the requirements of the view of scientific development, policies shall be implemented and perfected continuously by adjusting the housing structure, guiding rational consumption, abiding by deepening the reforms, doing well in regulation both at root and symptom, strengthening the rule of law, regulating orders, focusing on key points, giving guidance by category, and differentiating treatments. The people's government of various areas, especially the people's government of cities shall practically take the responsibilities and list the adjustment of housing supply structure and the control over the excessive increase of housing price in the target responsibility system of economic and social development work, hence promoting the sound development of real estate industry. The departments concerned under the State Council shall form a joint inspection group for carrying out a centralized inspection on the implementation by each and every place of the policies of the Central Government on adjustment of real estate market since 2005. With respect to the cities with macroeconomic regulation and control policies not implemented to position, with the extent of increase of housing price not under effective control, with outstanding structural contradiction, and with more problems in removal and resettlement, public reprimands shall be given, and corrections thereof shall be made within the specified time limit.

Appendix:
Opinions on Adjusting the Housing Supply Structure and Stabilizing the Housing Price

Since last year, various areas and various departments have implemented the decisions and deployment of the Central Government with respect to strengthening the adjustment and regulation of real estate market, and the trend of excessive growth of real estate investment and excessive increase of housing price has been constrained initially. However, the problems in the real estate fields have not been solved essentially and a few number of cities have witnessed excessive increase of housing price, outstanding contradiction of irrational housing supply structure, and real estate market in disorder.
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