Housing market resists intervention

Since signs of weakness in China's housing market started surfacing in the second quarter, local governments in many cities have responded by rolling back earlier purchasing curbs and related restrictions.

In late September, banking authorities lent a hand to support sales by easing mortgage restrictions for qualified buyers. Last month, officials also loosened access to the country's housing provident fund.

To date though, these rescue measures seem to have yielded little in the way of results. The latest data from the National Bureau of Statistics of China showed real estate investment rising by 12.4 percent year-on-year during the first ten months, 0.1 percentage point lower over the first nine months.

Over the same period, total sales by floor area fell 7.8 percent to 884.94 million square meters. In October alone, property sales declined 1.6 percent year-on-year in area terms, while sales revenue slumped 0.7 percent, indicating the continuation of a downward trajectory.

Supportive policies may not be enough to revive the flagging market at this time. It is time to let the invisible hand direct housing prices and play its role in allocating resources when the market requires a correction.