There are no major changes in the current demand pattern in the real estate market, the situation of reducing transaction volumes to stabilize prices has begun to change, confidence is recovering and the whole property market is improving, according to Qin Hong, deputy director of the policy research center under the Ministry of Housing and Urban-Rural Development.
Qin believes that the current real estate market policies have a clear objective to guarantee investment. The adoption of a series of relaxed monetary policies and tax reduction will encourage residents to purchase property.
In 2008, 600 million square meters of commercial residential housing was sold across China, down 20 percent year-on-year but nevertheless higher than that of any year before 2006. In the first five months of 2009, sales of commercial residential housing in China recovered rapidly with a 25 percent growth rate.
"This shows that China's real market demand remains solid in the current stage of fast-developing urbanization and upgraded consumption," Qin said, adding, "but as far as the real estate industry is concerned, market fluctuations will be affected by external factors for a long time."
Meanwhile, living conditions in cities are steadily improving. The development and improvement of cities strongly supports the growth in real estate demand.
By People's Daily Online