Fix housing prices to meet public needs

• Source: Global Times
• [22:01 April 18 2010]
• Comments

There must be some economic damage if we limit housing prices, but, if the limit can give more people the chance to own their own homes, the price is worth paying.

Government policies to limit housing prices and restrain the market have been criticized since being put into play. Supporters regard them as a great help to low-income people, but critics argue it opens up new possibilities for bribery.

In China, land is publicly owned, and leasing land can only be done by auction. This means that only a few companies with huge capital can acquire land, and the prices have been pushed higher and higher.

It is impossible to deal with the high price through the monopoly market itself. To limit the prices of house for some low-income people could solve the real problems.

Obviously, there remain some problems in the administration of fixed-price housing, like bribery and poor building methods. But these aren't reasons to get rid of the system altogether, since they can be solved by supervision.

Guangzhou Daily