Housing prices in 70 cities continue to rise
(China.org.cn)
Updated: 2006-06-15 14:27 Compared with the same period last year the
average housing price in 70 Chinese cities in May had increased by 5.8 percent,
which is 0.2 percentage points higher than April this year, according to survey
results released by the National Development and Reform Commission and the
National Bureau of Statistics Wednesday.
The five cities with the fastest housing price increases are Dalian in
Liaoning, Shenzhen in Guangdong, Hohhot in Inner Mongolia, Fuzhou in Fujian and
the capital Beijing. Prices for the first four cities have risen around 10
percent while in Beijing the figure is 9 percent. There are 25 cities where
house prices have gone up by over 1 percent.
However, in Shanghai, the average house price has fallen by 2.9 percent and
the price of commercial property has dropped by 6.2 percent compared with prices
in the same period last year.
The price of older properties in Dalian, Shenzhen, Zhengzhou in Henan and
Hohhot has gone up by 10 percent. In 34 other cities increases have also been
over 1 percent.
On May 29 China's State Council issued a new circular aiming to increase the
supply of affordable housing in a bid to bring down the soaring house prices.
The circular, produced by the Ministry of Construction, the National
Development and Reform Commission and seven other departments, states all local
governments must include the building of affordable homes in their 11th
five-year development plan (2006-2010).
According to the circular all developers must fund 35 percent of the
investment for the development of any project from their own capital before they
can seek loans from commercial banks.
The circular also aims at reducing demand, urging local authorities to
exercise restraint in demolishing old homes, which forces tens of thousands of
people into the housing market every year.
The circular warns a tough approach to developers engaged in hoarding
property or any other malpractice. Serious offenders would be fined or even have
their licenses revoked, it states.
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