Price war sparked in Beijing housing market
19/2/2004 14:50
Many property projects in Beijing are sold at discounts after the
Spring Festival holiday, arousing attentions from Shanghai home buyers, the
Shanghai Morning Post reported today.
After property prices in Beijing soared
for three consecutive years, price war is sparked in the Beijing real estate
market, with the housing prices cut by up to more than 2,000 yuan (US$241) per
square meter.
The Beijing-based Hopson Development Holdings, a real estate
giant of Beijing, announced to offer discounts on three property projects under
its flag, and those purchasing such housing can enjoy free overseas travel
services.
Two government policies have hit the Beijing real estate market,
said Gu Jianfa, a spokesman with the real estate research center of the Shanghai
Academy of Social Sciences. One is that the State Council announced to enhance
the development of domestic securities market and the other is that property
taxes will be collected, Gu pointed out.
Moreover, a growing number of
low-priced properties offered in the city since the second half of last year has
dragged down the average housing prices there, he added.
The Shanghai real
estate market is very sensitive towards the price cuts on Beijing properties,
with a growing number of new housing units sold after the Spring Festival
holiday and the local housing index hit a 18-month low in price
increase.
Wendy Zhang/ Shanghai Daily news
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