Sharp house price rise unlikely in Beijing
15/7/2004 11:42
Despite this year¡¯s fluctuations, house prices in China's capital will not
rise sharply but decline gradually, stabilising at around 4,500 yuan (US$544) a
square meter, says Yu Xiuqin, spokesperson with Beijing Statistics
Bureau.
"Though house prices have fluctuated this year, soaring to over 5,000
yuan a square meter in May, it doesn't mean prices will continue to rise," Yu
said yesterday at a press conference.
"The rise is more a result of a joint
manipulation by some property developers and media than a true reflection of the
market," she added.
House prices in Beijing have shot up by nearly a quarter
in the last six months, compared with an of average 20% in past years.
In the
same period, the city government started to implement the central government's
macro-economic policy to control the inflated growth of the real estate
industry.
"In this sense, the fast increase in the first-half is
unreasonable," Yu argued.
Instead, prices should decline in response to
government control, she added.
Yu expected the prices of new property
projects to stabilise around 4,500 yuan per square
meter.
Jane Chen / Shanghai Daily news
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