477 real estate firms to lose qualifications
Updated: 2011-11-11 13:14
BEIJNG -- The Beijing Municipal Commission of Housing and Urban-Rural Development will revoke the qualifications of 477 real estate enterprises, said a statement released by the commission Thursday.
These real estate enterprises did not apply for extensions after their qualifications expired or have canceled their business licenses, said the statement.
The list contains some subordinate real estate enterprises of some famous companies, as well as some unknown enterprises.
The large number of real estate enterprises losing their qualifications is closely related to the gloomy housing market in Beijing, said Zhang Yue, chief analyst with Home Link China.
Zhang also said this move will be good for regulating the housing market and facilitating resource integrity in the housing market.
As the sales volume and prices dropped, profit margins greatly decreased. Moreover, the high price of land in Beijing and the business' difficulty in obtaining bank loans also crippled some enterprises with no money or land on hand, she said.
The Chinese government has repeatedly pledged to continue its market curbs until it reaches a "reasonable" level. It aims to bring real estate prices down to a "reasonable" level while promoting the industry's healthy and sustainable development.
To achieve its goal of cooling the property market, the Chinese government has enacted a number of policies, including limiting the number of homes people can own, requiring higher down payments, introducing a property tax in some cities and constructing low-income housing projects.