Wen Jiabao: Housing Prices Are Far From Returning To A Reasonable Price &Nbsp; Regulation Can Not Relax.

The five session of the eleven National People's Congress held a press conference on March 14th (Wednesday) at the Golden Hall on the third floor of the Great Hall of the people. Premier Wen Jiabao met with Chinese and foreign reporters and answered questions from reporters.

People's Daily:

Hello, premier, people's Daily reporter asked questions.

The recent round of real estate market regulation, we are all very concerned about, the Central Committee's determination is very big, the intensity is also very big, some cities.

Wen Jiabao:

I recently took a sense of responsibility to seriously review the real estate regulation from 2003.

In fact, we have put forward 6 regulation measures in 2003, eight in 2005, and six in 2006.

But why is regulation not effective? The masses are also blaming us, saying that the higher the price of housing is, the less Zhongnanhai the policy will be.

I heard it very distressed.

I think

Why this two years real estate regulation has seen a little bit of light in the hard work? Some progress has been made.

First of all, our determination is firm and unwavering. Secondly, we have seized a key problem to curb speculative and investment demand and adopted targeted policies and measures.

For the real estate market, I have a basic view that China has a population of more than 1 billion 300 million and is in the stage of industrialization and urbanization. The demand for housing is rigid and will continue.

Of course, we say that living in residence does not mean that people have their own houses.

From the point of view, we should encourage more people to rent houses.

As for the development of the real estate market, I have several viewpoints: first, we must maintain the long-term stable and healthy development of real estate.

If we blindly develop, the emergence of an economic bubble will not only affect the real estate market, but also drag the whole economy down.

Second, what is a reasonable return of housing prices? I think reasonable housing prices should be able to adapt housing prices to the income of residents, and match prices with investment and reasonable profits.

Now I can tell you clearly that housing prices are far from returning to a reasonable price.

Therefore,

Third, there is no doubt that the development of real estate should give full play to the basic role of market allocation of resources, that is to say, we should make full use of the market.

But the hand of the government can not be lacking because it is more stable and promotes fairness.

Thank you.