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Property developers to offload shares

(China Daily)
Updated: 2007-02-13 09:14

To prevent its property market from overheating and slow down rising housing prices in some areas, the central government has announced a land appreciation tax that would eat into developers' profit.

It also imposed new rules on property agencies and foreigners who want to buy more than one house.

Moreover, Shanghai and Shenzhen, the two companies' bases, will see a slowdown in their real estate markets in the coming years, said Liao Qun, chief economist with Hong Kong's CITIC Ka Wah Bank.

The mainland needs to step up the implementation of its measures to cope with the overheating property market.

"It may take another four years for the market to cool down," he said.

Over the next four years, Liao predicted the annual growth of Shanghai property prices could slow to 3 percent. Big cities likeBeijingand Shenzhen will also see prices rise in single digits by then, he said.