Huang Yu, deputy director of China Real Estate Index, a leading property research institute, forecasts that there will be further rises in real estate prices next year with the highest rises coming in the country’ second-tier cities.
Meanwhile, according to the institute’s calculations, China’s soaring property prices last year was closely linked with credit expansion.
China Daily reported Huang Yu said, "The average property price in the country grew 23% last year, among which 10% was contributed by banks’ extra lending from the $590 million stimulus package."