On Monday, new policies released by Beijing to curb speculation in the nation's property market won measured praise from economists but failed to quell doubts they go far enough to head off an evolving asset bubble.

China's State Council has announced that the policies would raise housing down payment requirements introduce transaction taxes on properties sold within five years and restrict bank loans to property developers in bid to quell speculation and ease growing social tensions over soaring prices.

The new policies that were prepared by nine ministries will be effective on Thursday. The State Council circular said the measures aim to promote the healthy development of the real estate market.

Local governments will also be held responsible for controlling prices, while developers who manipulate prices or distort information will be liable for prosecution. China currently imposes a transaction tax on properties flipped within two years.

By M. Sese
http://realestatepress.org