House Price Growth Rate Slows Down in China

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Last updated at: (Beijing Time) Wednesday, January 30, 2002

House Price Growth Rate Slows Down in China

Though house prices keep surging in recent years, the would-be buyers may get a comfort by a latest national survey suggesting the price rising will slow down in China.
The house price rose at an average rate of 1.8 percent in the final quarter of last year, 0.4 percentage point lower than that of the same period the year before.

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Growth Rate Slows Down in Some Cities

Jointly conducted by the National Bureau of Statistics and the State Development Planning Commission, the survey targeted real-estate markets in China's 35 middle-sized and large cities.

The house price rose at an average rate of 1.8 percent in the final quarter of last year, 0.4 percentage point lower than that of the same period the year before.

This was matched in the rental market with landlords reporting more interest from house hunters.

Among the surveyed, north China's Taiyuan and the coastal port city of Dalian have witnessed a decrease in house prices.

Price-Hike in Some Regions

While prices in most cities maintained slow growth, house-buyers in Shanghai and east China's port city of Ningbo saw a respective quarter-on-quarter jump of 5.1 and 9 percent, according to the survey.

In Beijing, one of the most expensive cities in terms of housing, house and office buyers had to pay one percent more than in 2000 if they bought in the fourth quarter of last year, reported the survey.

House-Buyers Complain in Beijing

However, the average price of a residential house in Beijing reached 4,771 yuan (US$576) per square meters in the final month of last year -- a 25.8 percent jump over December 2000.The per capita income of Beijing residents only increased by 10 percent.

Most house-buyers in Beijing complained of price rises in those residential buildings specially built for middle and low-income families.

"I think prices for those houses which are part of the nation's security system should not allowed to increase so sharply," said 27-year-old Li Pin, a private company employee in Beijing's Haidian District.

Chinese Real Estate Sector Soars in 2001 (Click the Picture for Details)

The fast growing real estate sector has became one of the driving forces of China economy in 2001. The real estate market has benefited from a series of policies adopted by the government to stimulate the domestic demand and encourage investment.

China is expected to increase 5.5 to 6 billion square meters' of housing floor space, or 70 million sets of houses in the coming ten years, said Yang Shen, chairman of China Real Estates Association.

Statistics from Ministry of Construction show that from 1980 to 2000, China's real estate industry had kept a rapid growth momentum with newly-built houses in rural and urban areas to have reached 20.3 billion square meters, an increase of two folds as compared with the past 30 years.

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Source from China Economic Info. Network

Housing Price Hike Slows Down in China

The growth rate of China's average housing price dropped for the first time this year to a single digit level of 9.2 percent in August.

NBS figures show the average price of commercial housing stood at 2,263 yuan per square meter by the end of August, when the national real estate index, which tracks down the real estate industry, dropped 0.1 points from July to 106.36.

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