China's housing prices to continue to rise in Q2

A report released by the All-China Federation of Industry and Commerce (ACFIC) said housing prices will continue to rise in China in the second quarter of 2007. And this despite serious efforts by the government to contain them.

The report said that fast growth in fixed assets investment, money supply and loans are fueling housing price rises. Lie Meisheng, a senior ACFIC official, said, ‘China’s excess liquidity is driving real estate development projects and keeping housing prices bubbling.’

According to official figures investment in China’s real estate sector topped RMB2 trillion in 2006, four times the figure for 2000.

The report states China’s economy is going well and polls show that people with high- and medium income are keen to buy houses. It concludes the second quarter will see no slowdown in the inflationary trend.
Source: English.eastday.com