[photopress:real_estate_in_Shenzhen.jpg,full,alignright]The government has seriously tried to cool down the Chinese real estate market. It seems not to be working. The National Development and Reform Commission has announced that investment in real estate increased in the first quarter of this year.
Between January and March, nationwide the real estate sector was RMB354.4 billion ($46 billion), a year-on-year growth of 26.9%. The growth rate was 6.7% higher than the previous year and 1.6% higher than the growth rate for fixed assets investment in urban areas.
The three-month period saw RMB712.5 billion ($92.5 billion U.S. dollars) earmarked for real estate development, up 26.3%.
These increases were right across the board. If this is what happens when the government works seriously hard at taking the heat out of the market what would have happened if it had been left alone?
An explosion of growth which, however you view it, is not in the best interests of China.
Source: China View