If the government really takes over these expensive houses, it is actually making use of taxpayers' money to stuff property developers' purses and satisfy their greed. This is an immoral practice for government.

Chen Qinggui (www.tianshannet.com): In a market economy, the government's function is to make rules and regulate the market. By no means should it directly interfere with market operations. Therefore, the Zhengzhou Municipal Government's practice to buy unsold houses with taxpayers' money goes too far.

The effect of the market-boosting effort is hard to predict. The government's interference will probably bolster the already high housing prices, despite the fact that supply outnumbers demand. This will encourage property developers to increase investment and hoard houses, because they think prices and their profits will remain stable. This actually goes against the Central Government's macro-control policy and will reduce the achievements of macro-control efforts to nil.

On the other hand, potential homebuyers are very likely to delay their purchases after knowing that the government will buy unsold houses and offer them at discounted prices. This will further dampen demand.

Guo Songmin (Market Herald): Does the Zhengzhou Municipal Government have so much money that it can buy up all unsold houses? Probably not.

If housing prices remain high, apart from a small number of lucky citizens who already have huge bank accounts and can buy subsidized houses, most potential buyers will still not be able to afford a home of their own. Obviously, although the government claims that it is launching this policy to help low-income families improve housing conditions, what transpires is that it becomes even more difficult for them to afford a house.

Even if the Zhengzhou Municipal Government really purchased most or all of unsold houses, would the problem be solved? The current condition in China is that those who really need houses to live in are frightened away by exorbitantly high prices, and the vast majority of those active in the property market are speculators. But now, the prices are dropping and they are trapped. If the government takes over these speculators' houses, it is actually buying them with taxpayers' money. This expenditure on so many expensive houses could possibly throw the local government into a financial crisis.

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