At CIHAF 2009, the country’s largest professional real estate expo, industry experts said China’s property market is not facing big risks in the short term despite a rapid growing real estate price in some key cities this year.
Teng Tai, managing director of China Galaxy Securities, said, "A key indicator to judge the scale of the property bubble is to see the financial leverage of mortgage and property developers’ debt ratio. In China, the financial leverage of home purchase is still under control and is not likely to trigger a crisis like the ones US and Dubai experienced."
Chen Huai, dean of the policy research office of the ministry of housing and urban-rural construction (seen in our illustration), said, "One of the major measures that government should take to curb the fast growing property price is to pump more land supply into the market and construct more affordable housing and low-rent housing for low-income families."
China Daily reported that during the three-day expo, a land promotion forum was also held, with more than 10 cities over the country, including Beijing, Rizhao and Qingdao offering many primary land parcels for auction.