- Joined
- Jan 3, 2009
- Messages
- 2,605
- Points
- 0
Latest Stats Show Chinese Real Estate Too Hot To Cool Down
By Xiong Bin & Li Mei
Last Updated: Jan 7, 2011
Despite Beijing’s stringent regulations designed to deflate China’s real estate bubble, newly released statistics show that the markets remain overheated.
According to the Land Reserve Center’s official announcement, the 2010 land transfer fees in Beijing, as of Dec. 30, 2010, totaled 163.672 billion yuan (approximately US$24.8 billion), an increase of 76.37 percent compared with 2009. Beijing has displaced Shanghai as the city with the highest amount of land income. As a result of the tighter regulations in 2010, Beijing’s property market trading volume (number of properties) was reduced, but housing prices did not decline, rising instead over 40 percent.
A real estate agent in Beijing, Li Wenjie, said that Beijing’s real estate market has not been affected by the regulations and was still hot.
“There are many people investing in Beijing,” Li said. “Do you know why? Because basically, most projects are [related to] demolition, we’ve closed a lot of deals. Beijing probably ranks first in the nation every year.”
Another Beijing realtor, Mr. Shi, said that besides buyers flocking to homes, rents keep rising as well. “Basically, new houses always sell out. The income from commissions and rents keeps breaking records,” Shi said.
A researcher at China’s National Development and Reform Commission, Wang Xiaoguang, was interviewed by a Hong Kong newspaper, Wen Wei Po, in 2010. Wang said that China’s real estate bubble “is in a self-reinforcing phase” and that the bubble is growing in some places. If allowed to continue as is, China’s economy “may pay the heaviest price since economic reform began.”
Chinese media reported that the land transfer fees in some cities have exceeded more than half of the local regime’s annual revenue. The significant increase in these fees indicates that the local government's dependence on land income is deepening.
.
By Xiong Bin & Li Mei
Last Updated: Jan 7, 2011
Despite Beijing’s stringent regulations designed to deflate China’s real estate bubble, newly released statistics show that the markets remain overheated.
According to the Land Reserve Center’s official announcement, the 2010 land transfer fees in Beijing, as of Dec. 30, 2010, totaled 163.672 billion yuan (approximately US$24.8 billion), an increase of 76.37 percent compared with 2009. Beijing has displaced Shanghai as the city with the highest amount of land income. As a result of the tighter regulations in 2010, Beijing’s property market trading volume (number of properties) was reduced, but housing prices did not decline, rising instead over 40 percent.
A real estate agent in Beijing, Li Wenjie, said that Beijing’s real estate market has not been affected by the regulations and was still hot.
“There are many people investing in Beijing,” Li said. “Do you know why? Because basically, most projects are [related to] demolition, we’ve closed a lot of deals. Beijing probably ranks first in the nation every year.”
Another Beijing realtor, Mr. Shi, said that besides buyers flocking to homes, rents keep rising as well. “Basically, new houses always sell out. The income from commissions and rents keeps breaking records,” Shi said.
A researcher at China’s National Development and Reform Commission, Wang Xiaoguang, was interviewed by a Hong Kong newspaper, Wen Wei Po, in 2010. Wang said that China’s real estate bubble “is in a self-reinforcing phase” and that the bubble is growing in some places. If allowed to continue as is, China’s economy “may pay the heaviest price since economic reform began.”
Chinese media reported that the land transfer fees in some cities have exceeded more than half of the local regime’s annual revenue. The significant increase in these fees indicates that the local government's dependence on land income is deepening.
.
