Premier Wen gives online interview at Xinhuanet, Gov't Portal

Profile: Chinese Premier Wen Jiabao   

Premier Wen's Highlights

Chinese Premier Wen Jiabao holds an online chat with netizens jointly hosted by the central government website and Xinhua website in Beijing, China, Feb. 28, 2009. (Xinhua/Yao Dawei) Photo Gallery>>>

    BEIJING, Feb. 28 (Xinhua) -- Chinese Premier Wen Jiabao said here Saturday he hopes to see a stable and healthy development of the country's real estate sector in the face of the global financial crisis.

    China should strengthen management and regulation to keep housing prices and the scale of property construction "at a reasonable level", said Wen during an online chat on two state news portals -- the central government website (http://english.gov.cn) and the Xinhua News Agency website (http://www.chinaview.cn ).

    Housing prices have long been under fire in China, as consumers complain houses in large cities are too expensive to afford, giving developers unfair huge profits.

    Wen said the government highly values the property industry as it concerns the life of ordinary people and directly affects the national economy.

    The government has urged for stronger confidence in the real estate market while pledging more money and energy on meeting the needs of low-income families, he said.

    The government fund must be used properly to ensure house buildings are economical, safe and of good quality, said Wen. He also noted the construction should save land and suit people's needs.

    "Auditing and supervision should go along with all property projects," said Wen. "Problems must be dealt with whenever they emerge."

    The property prices in 70 major Chinese cities fell 0.9 percent in January from a year earlier, a faster fall than the previous month.

    In December, the figure saw the first year-on-year drop since the government started to release it in 2005.

    Analysts attributed the slump to slack home buying due to grim economic situation and future uncertainties.

    The Chinese government announced a stimulus package for the ailing property industry in December, giving favorable tax policies and loan terms on home sellers and buyers while emphasizing low-income housing.