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Two disadvantages afflict the Chinese real estate market
25/10/2005 16:54

Wendy Zhang/ Shanghai Daily news  

Excessively large apartments and too-few quality properties are cited as two disadvantages of the Chinese real estate market, said Sun Kefang, deputy general engineer with the Chinese Ministry of Construction, when attending the 2005 Kunming Property Fair, as cited by eastday.com today.
The domestic real estate market is growing rapidly, but the average apartment space in some localities already exceeds those of developed countries. Limited availability of land will have a negative impact on the domestic property sector, Sun pointed out.
Although suffering from land shortages, Zhejiang Province boasts a per-capita living space of 31 square meters, higher than the national average of 25 square meters. China should develop more small and medium-sized apartments of around 100 square meters, Sun suggested.
Moreover, real estate developers often fail to use high-quality construction materials ,so buyers will have to pay higher maintenance costs in the future.
The government is responsible for both controlling the property plot ratio and encouraging real estate developers to build more high-quality and energy-efficient properties by the issuance of preferential policies, Sun stressed.
The two disadvantages have caused a serious problem for the domestic real estate market, he added.