China's Guangzhou city to tighten property market controls, boost land supply

China's Guangzhou city to tighten property market controls, boost land supply

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Buildings in Yangji village (lower R) in the southern Chinese city of Guangzhou remain to be pulled down September 22, 2010 ahead of the Asian Games to be held in the city in November.

BEIJING - China's southern Guangzhou city will increase the supply of affordable homes and make more land available for property development, joining other major cities in attempts to control soaring house prices.

The city's Municipal Land Resources and Housing Administrative Bureau also said in a statement on its website late on Monday that it would crack down on "fraudulent" house buying, and boost control over the issue of mortgages to second-home buyers.

The measures follow similar ones taken by other large cities, including the capital Beijing and Shanghai, where prices have surged in recent months.

Average home prices in Guangzhou rose 20.5 percent in October from a year ago, official data showed on Monday, the second successive month of 20 percent rises and the biggest rise since January 2011.

The bureau said it would raise land supply this year by 20 percent above the five-year average.

(Reporting by Jonathan Standing; Editing by Chris Gallagher)

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