Housing prices keep rising, despite macro-control

10:25, October 15, 2010      

Email | Print | Subscribe | Comments | Forum 

Housing prices among China's major cities rose 9.1 percent year-on-year, despite the government's sterner measures to rein in property bubbles, the National Bureau of Statistics reported on Friday. Prices rose 0.5 percent last month from August, triggering a renewed bout of public gripes about the government's macro-control effort.

And, more than 70 percent of China's top bankers say they are concerned about a drastic slump in the property prices, which will worsen their balance sheets and give a rise to the bad loans, a national survey by China's Bankers' Association has revealed on Thursday.

The worries held by the top bankers might explain why the authorities has not decided to resort to the harsh measure of imposing the property tax nationwide to dampen housing prices, a major ire of the public, experts say.

China's government has instructed a few cities, including Shanghai, Beijing and Guangzhou, to restrict permanent city residents buying only one house or apartment. Earlier, the central bank tightened down-payment requirements, raising the ratio from initial 20 percent to at least 30 percent, to rein in housing purchases.

However, prices have not made a turn yet. Some experts have estimated that Beijing will continue to gauge the price trends tentatively next year, because it cannot afford to see a big housing bubble forming in China.

"The authorities may not see the property curbs as successful until prices fall by double-digits from a year earlier, so the current restrictions may last into next year," said Zhang Zhiwei, a Hong Kong-based economist at investment bank China International Capital Corp, according to a Bloomberg News report Friday.

Year-on-year housing price gains have slowed from April's 12.8 percent, a record for the data series, which began in 2005.
Property sales by volume rose 8.2 percent in the first nine months of the year to 632 million square meters. The value of sales jumped 15.9 percent to 3.19 trillion yuan ($480 billion).

By Jimmy, People's Daily Online

(Editor:梁军)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion