China pushes for property registration

China plans to establish a nationwide property registration system by 2016 and make it operational within two years, the Ministry of Land and Resources said. This is seen as part of an effort by Beijing to make the real estate market more transparent. Leng Hongzhi, official of the ministry, noted that the verification and protection of private property would complement the country's Property Law that took effect in 2007. The registry will include land, houses and any other fixed property, as well as property rights, such as those that cover exploration and exploitation. Analysts say that the registry will probably precede the expansion of a property tax, now being applied on a trial basis in Shanghai and Chongqing. The registry is meant "to protect the property rights of individuals, which is the precondition and foundation of a market economy," the ministry said in its statement. It added that more reliable and accurate data from such a registry would also help "improve administrative effectiveness." Analysts believe the registration, although unlikely to cool home prices instantly, will lay the foundation of further policy measures and facilitate regulatory efforts for the healthy development of the property sector. The country will also accelerate the registration of rural collective construction land including homesteads, to provide the basis for reform of related markets, according to the analysts.