Mar. 28 – Land prices in China will rise more slowly this year than in 2007 according to a report from the China Land Surveying and Planning Institute.

The institute, a division of the Ministry of Land and Resources forecasts that measures to curb property prices will begin to take effect, slowing growth in the market.

According to Xinhua, land prices in major cities averaged RMB1,751 per square meter last year, up 13.37 percent from 2006. That year-on-year growth rate was more than double that recorded in 2006.

The State Council issued a circular on land conservation at the beginning of this year that aimed to improve the efficiency of land use and curb speculation. The government also vowed to increase the supply of affordable housing which will help stabilize prices the report stated.

China plans to allocate more than 70 percent of the land approved for housing construction in 2008 to smaller residential units that will have lower rents and prices aimed at low-income families.

Housing prices in 70 cities rose 10.9 percent year-on-year in February, a decrease of 0.4 percent from January growth rate.