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China is increasing the amount of land available for purchase.

China is increasing the amount of land available for purchase.

As part of its attempts to stabilize the housing market, China will boost the quantity of land available for residential property development in the fourth quarter.
According to the Ministry of Land and Resources, the supply of land made available grew by 28% in the first nine months of 2013, to 91,700 hectares, compared to the same period previous year. find property qatar

Despite the fact that the amount of new land given to the market during the first three quarters was more than the five-year average, land sales in key cities continue to surge, defying government attempts.

According to Bloomberg, municipal residential land sales jumped 26% in the first eight months of this year compared to the same period last year. As a result, the average price per square meter climbed by 43%, bringing total profits to 816.5 billion yuan ($133 billion) for Chinese cities.

The ongoing growth in sales activity and prices is posing a challenge to government efforts to cool the housing market.

"It's actually a really worrisome indication if the momentum in the land market can't be cooled down fairly fast," Bei Fu, Standard & Poor's Hong Kong-based property credit analyst, told Bloomberg. "If things continue to heat up, we're concerned that more policy tightening will be implemented, with unforeseeable ramifications for the broader market."

New home prices rise in lockstep with land prices. New home prices rose at their fastest rate in at least two and a half years in August, fueling concerns about a developing housing bubble.

According to Reuters, the land ministry has lately ordered major cities such as Beijing, Shanghai, Guangzhou, and Shenzhen to increase the amount of residential land available. Land supply in Beijing surged 52 percent in the first nine months of 2013 compared to the same period last year.

"In the fourth quarter, we expect land available for property construction to continue to rise," the ministry said. "In the first half of next year, a certain quantity of land will turn into market supply, which will effectively stabilize existing market expectations on housing and land markets."

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