[photopress:real_estate_affordable_housing.jpg,full,alignright]Li Xiaochao, spokesman for the National Bureau of Statistics, has said the current housing supply should be better structured as demand from urban residents is expected to increase even faster in coming years.
He said, ‘More efforts should be made to improve housing supply at medium and low prices, which are most popular with urban residents.’
Most property development is at the high end of the market. Analysts and industry experts said the excessive increase in property investment poses long-term economic and financial risks.
Shuai Hu, a property market analyst at Haitong Securities, said: ‘A stricter macro-control policy on property development would take pressure off inflation and help smooth out asset price rises.’
The National Bureau of Statistics says the aggregate fixed-assets investment rose 25.7% in the first nine months from the previous year.
In the first three quarters, aggregate investment in the country’s property development reached RMB1.6 trillion, up 30.3% up from the previous year.
Kenny Ho, research head of Jones Lang LaSalle, a leading real estate agency, said the much stricter macro-control policy on property by the government could accelerate the decline in bank loans for property projects in the fourth quarter, following a downward trend in the third quarter.
The government’s renewed efforts in the real estate industry had a large impact on property stocks. Property shares are beginning to fall although not, as yet, in a major way.
Source: China Daily