BEIJING, May 31 (Xinhua) -- China has prohibited the
supply of land for building luxury villas as of Wednesday, Wang Shiyuan, vice
minister of land and resources, announced.
The land supply for low-density and large houses will also be strictly controlled, he said. The
new policy constitutes part of the national effort to curb soaring housing
prices.
Wang said the ministry will comb luxury housing
projects across the country to ensure the implementation of the new policy.
However, critics have said the effect of the new
policy is hard to gauge as key government departments are yet to agree on the
definition of a "villa".
It is common knowledge that some housing developers
have in the past successfully dodged the government's restrictive policies on
villa projects by referring to the word townhouse or other innovative names.
Wang said land authorities will also increase the
supply of land for the building of smaller and cheaper houses. Local governments
will be required to publish their annual land supply plans, including the supply
of land for building affordable houses.
The State Council circular demands that local
authorities must allocate 70 percent of the housing land to the building of
cheaper, affordable homes.
Land authorities will also step up their after-sale
supervision so as to make sure that housing developers are properly using their
land or building the right type of houses according to the land sale contracts,
the vice minister said. Enditem