[photopress:housing_Beijing_exhibition.jpg,full,alignright]Housing prices in the Chinese capital will start to fall in 2-3 years, according to a recent report: ‘2007: Report on Chinese capital’s economic development’. This predicts that the housing prices still have a room for a rise — not big rise — then the prices will stabilize and start a downward trend in 2-3 years.
The projection was confirmed by another report: ‘2007: Report on Chinese capital’s urban and rural areas’ development’ which lists several factors for the predicted fall: real estate tax, yuan appreciation, interest rates adjustments, low-rent housing, economy housing constructed by the government.
As the political hub of a country that promotes the strategy of ‘building a harmonious society’, Beijing is among the top Chinese cities with the highest housing rate.
Beijing’s housing price growth was the fastest among 70 major cities in China in October. Last month, it was second only to Shenzhen according to the latest official statistics.
Prices of commercial houses in Beijing jumped by 16.4% in the third quarter of 2006 year-on- year, compared with 13.7% income growth for local residents in the same period.
Dai Jianzhong, a researcher with the Beijing Academy of Social Sciences said, ‘The exorbitantly high prices have by far exceeded the purchasing power of most residents and prejudiced their interests.’
Compared with 2005, the transaction price of land for residential construction in Beijing in fact dropped by 12% last year, when there was no marked price rise in building materials, meaning real estate developers were ‘profiteering’, Dai said.
Half of online voters participating in a survey on the http://www.focus.cn, a popular housing information portal, said they believed housing prices would rise this year, compared with nearly 70% of voters who thought so three weeks ago. A much, much fuller report by clicking on HERE.
Source: China Daily