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21/04/2012 04:02:00

China Policy Favoring First-Time Home Buyers May Become Norm--Report

SHANGHAI -(Dow Jones)- China may make its preferential policies for first-time home buyers permanent, the China Business Journal reported Saturday, citing an unnamed official at the Ministry of Housing and Urban-Rural Development.

"We need to support reasonable demand from home buyers while curbing speculative demand," the report quoted Jiang Weixin, head of the housing ministry, as saying.

The housing ministry has sped up approvals for the construction of cheap, small- and medium-sized houses, while seeking other ways to support the sector, the report said.

China Premier Wen Jiabao last week reiterated that controls on the country's property market must remain in place, and said authorities would find ways of expanding the channels available to finance the construction of affordable housing while also ensuring there is sufficient land for such projects.

Chinese banks have started offering preferential mortgages for first-time buyers this month in response to calls from authorities to support them, state media reported.

Newspaper website: http://www.cb.com.cn

-By China Bureau, Dow Jones Newswires; 8621 6120-1200; djnews.shanghai@dowjones.com

(END) Dow Jones Newswires

April 20, 2012 22:02 ET (02:02 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

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