Chinese Online Class - Beijing housing prices up 10.1% in 1st half

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BIZCHINA / Center

Beijing housing prices up 10.1% in 1st half

By Tu Lei (chinadaily.com.cn)
Updated: 2007-07-23 10:13

The housing sales prices increased 10.1 percent year on year in the first
half of this year, said Yu Xiuqing, a spokeswoman from the Beijing
Statistic Bureau, last week.

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The high prices are a result of the increased permanent population and
hot money, said Yu.

Figures show that every year the permanent population in Beijing rises by
about 300,000 to 400,000 people, with some of them being college
graduates. The capital city's?number of graduates in 2006 increased to
179,000 from 70,000 in 2001.

"Many of them choose to stay in Beijing," said Yu.

The upgrade of residents' consumption structure creates a strong demand
for housing, and many people are eager to make money via buying and
selling houses, which also shortens the supply of housing, said Yu.

Currently, the city government is working on safeguard measures, said Yu,
adding the government will also supply an additional 20 million square
meters of economically affordable houses and houses with limited housing
prices and flooring area in three years.

(For more biz stories, please visit Industry Updates)

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