Chinanews, Shanghai, Apr. 3 – Chinese real estate market will face a new round of comprehensive supervision placed by the government this year. On Monday, eight central government departments, including the Ministry of Construction, the Ministry of Land and Resources, the Ministry of Finance, the National Audit Office, the Ministry of Supervision, the State Administration of Taxation, the State Development and Reform Commission, and the State Administration of Industry and Commerce issued the "Notification on Regulating the Order of the Real Estate Market". The notification says that in the coming one year, Chinese government will strengthen the supervision work on the real estate market, check real estate developers’ financial records and inspect their business activities. In addition, the government will correct and punish the malpractices existing in the construction and transaction process, and illegal activities pursued by intermediate agencies, the Shanghai Securities Journal reported.
According to the eight central departments, the regulatory work will last for a whole year. During this time, the central government will pay close attention to some key areas where malpractices are liable to occur, including the malpractice in the construction and transaction process and those power-for-money deals. The government will launch a full-scale campaign to check those projects which are being constructed and projects which will be put on sale soon. Projects that arouse people’s complaints will be thoroughly investigated.
Government inspection work will cover nearly all areas that are involved in property development and sales. The governments will check whether the project has gained government approval, whether the project planning and construction work has been authorized, and whether advance sales of the houses are in line with related rules. It will also check whether there are any power-for-money deals happening in the selling process, and whether real estate developers pay tax according to related rules. Illegal ads, hoarding up houses to make lucrative profits, jacking up prices, tax avoidance and evasion acts, and demolition of old houses by coercion, will also be investigated. If any real estate developers are found to have been involved in any of the malpractices, the government will further audit their financial records and pay a closer attention to their detailed business activities.
