China's Real Estate Market FlourishingAround 90 percent of the apartments sold last year in China were purchased by individuals, and the proportion in north China's Tianjin Municipality reached 98.5 percent.A couple in Tianjin used bank loans to buy their own two-room apartment after four years of marriage. They used the bank loans to realize their dream, putting an end to rent. It has been an aim for the Chinese to have their own houses. The ongoing reform in China's apartment distribution system has inspired more Chinese to buy their own houses. Previously, companies and governmental organizations were the buyers in the housing market. The proportion in Beijing had remained around 70 percent to 80 percent in the past few years, while the figure decreased to 20 percent last year. New financing policies and the change of thinking have seen a material increase in individual buyers in the real estate market growth. Over 70 percent of Tianjiners and over 80 percent of Shanghai residents were financed via specific bank loans for apartment purchases. The new implementation of cash for apartment distribution policy nationwide effected a nearly 30 percent growth rate in Tianjin's real estate market last year, 17 percent more than the average increase of the tertiary industry. Luo Yongtai, who specializes in the study of the country's real estate development, said the country's real estate market development has experienced three phases since the founding of New China in 1949. They are: no permission of individual involvement of building construction or individual purchase of houses before the introduction of reform and opening-up policy in 1978, the state in charge of this; working units took the place after 1978; now the individuals are encouraged to buy apartments. Experts believe that low-cost apartments, efficient financial support, and improved community services will make the country's real estate market flourish. It is estimated that the per capita living space in the country will exceed 10 square meters this year. The real estate industry, on the other hand, has brought about the development of other industries including automobile, information, financing, construction materials, electronics and transportation. Besides, the increasing number of individually owned apartments has also helped raise the growth of the housing rental market. To facilitate the market, the Tianjin Municipality has set up a housing bank to provide rental information to the local people by use of the related data. Also, the hirer will be able to collect the rent via an accountant book of the Industrial and Commercial Bank of China. |
| People's Daily Online --- http://english.peopledaily.com.cn/ |