New Controls in the Making

China's housing sector is waiting for the second shoe to drop. Last month China sent eight teams of central government officials to 16 provinces to check on the implementation of its property curbs. With the Central Government's inspection team returning to Beijing at the beginning of August to submit reports that will be used to determine future property policy changes, speculation has arisen that China may set new property controls as early as this month.

New price-control measures may soon hit China's property market, which just began to show signs of a rebound following government measures to stimulate the slowing economy, said the state-run Xinhua News Agency.

Yang Hongxu, Vice President of E-house China R&D Institute, said the housing market currently faces pressures of price rebounds. If no new control policy is rolled out, market expectations for home price hikes will be reinforced in the second half of 2012.

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