Real estate registration to safeguard rights

The recent launch of provisional real estate registration rules has touched off a firestorm of debate as experts and observers go back and forth over the impact these rules may have on the market. Some believe they will aid the government's ongoing campaign against corruption, leading ultimately to a decline in prices. Others regard them as a prelude to an eventual nationwide property tax rollout.

Real estate registration will play an important role in protecting the property rights of all citizens. Through a unified registration system, the government can now access information regarding all types of immovable properties. This will improve management efficiency and quality.

However, registration is unlikely to bring residential property prices down. Some corrupt officials may have no choice but to sell their apartments, thereby adding to market supplies. Any increases will be small though, exerting a negligible impact on market dynamics and long-term pricing trends.

Clear property rights and comprehensive information will give the market more sway over resource allocation. Meanwhile, the government can also make better policy decisions as it gains more clarity over conditions in the market.