Lu Yingchuan, deputy director of the Beijing municipal commission of development and reform (seen here) has said Beijing’s real estate market will continue to remain stable and healthy even after the city stages next year’s Olympic Games.
He said, ‘The unique characteristic of Beijing’s real estate market lies in the huge housing demand from outside the city, which accounts for 35% of total market demand.’
Nearly 300,000 to 400,000 people come to work in Beijing from other provinces each year. Others, such as foreigners, those looking for better housing, and speculators are all investing in the sector.
Lu Yingchuan said, ‘The rise in housing prices here is a result of market forces, coupled with increasing consumer demand.
Statistics released yesterday by the National Development and Reform Commission showed that housing prices continued to rise in the first quarter this year. Shenzhen (12.6%), Beihai (10.1%), Beijing (9%) and Guangzhou (8%) were the leading cities.
In Beijing the cost of new and second-hand housing surged by 9.8 and 9.5% on average.
Lu Yingchuan said, ‘People’s income will continue to rise in the long-term, and they will be looking forward to better housing.’
Source: China Daily Post