China's property prices rise in Nov

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China's property prices rise in Nov (http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1098369/1/.html)
Posted: 10 December 2010 1017 hrs

BEIJING: Property prices in China's major cities recorded their third straight month-on-month rise in November, official data showed Friday, defying Beijing's efforts to cool the red-hot market.

Prices in 70 major cities were up 0.3 per cent last month from October and were 7.7 per cent higher than a year ago, the National Bureau of Statistics said on its website.

The rise comes after a 0.2 per cent month-on-month increase in October and 0.5 per cent on-month gain in September.

It was the seventh straight month for slower year-on-year growth since April, when prices soared 12.8 per cent.

Prices have remained stubbornly high despite the government's adopting a range of measures such as hiking minimum down-payments on all property transactions to at least 30 per cent in an effort to avoid a damaging bubble.

The third straight monthly increase in property prices is likely to fuel expectations that another interest rate hike is imminent amid growing official and consumer fears over rising inflation.

A Chinese government think tank has warned the real estate bubble is getting worse, with property prices in major cities overvalued by as much as 70 per cent, state media reported Thursday.

The number of square metres sold in November soared 14.5 per cent year-on-year to 101.13 million, while the value of transactions skyrocketed 18.6 per cent on year to 528.6 billion yuan (79.4 billion dollars).

Based on these figures, the average cost per square metre was 5,227 yuan -- much higher than the average monthly income of Chinese city dwellers.

Analysts have blamed the government's massive stimulus measures taken since late 2008 to combat the financial crisis for injecting huge amounts of liquidity into the market and driving up property prices.

Key economic data to be released Saturday is expected to show inflation rose 4.7 per cent on year in November, according to a survey by Dow Jones Newswires.

That would mark the fastest rise in prices in more than two years and would be well above the official full-year inflation target of three percent.

-AFP/wk

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China property buyers undeterred by prices (http://www.channelnewsasia.com/stories/eastasia/view/1098392/1/.html)
By Liang Kaixin | Posted: 10 December 2010 1210 hrs



BEIJING: It's been two months since the Chinese government implemented cooling measures to curb excessive speculation in the property market, but property prices remain sky high.

Meanwhile, most prospective buyers don't seem to be deterred by the prices.

Some property companies have also started organising viewing excursions every month, to help thousands of potential buyers travel to many property developments in a day.

Soufun.com spokesperson Chen Zheng Wei said: "For property viewing excursions, we reach out to netizens to sign up online.

"Then we will organise a few popular property developments for them to choose online. They can choose according to their preference or area, and we will organise them into different routes for viewing".

Property prices have skyrocketed in Beijing post-Olympics, due to excessive speculation.

The government had tried to cool the market, with measures such as limiting loans for the purchase of the third property .

Down payment for all property purchases were also raised from 20 to 30 per cent, causing an outcry amongst first-time buyers.

One buyer said: "What can we do? There's no choice. Either we don't buy, or we buy smaller apartments, or at a further location".

Another added: "We don't feel like there's much effect. House prices did not drop. Maybe it will take some time for the market to adjust the price. But it is still quite high".

With the completion of several subway stations, buyers are also increasingly looking at locations further from Beijing's city centre.

But these new developments don't come cheap either.

Beijing Marketing Centre of Zhujiang Investment deputy general manager Wang Qian said: "Prices have been rising while the property is being built.

"Our infrastructure is also constantly improved, so prices are soaring, especially since the subway station nearby is going to start operation in a month's time".

While prices have slowed after the implementation of cooling regulations, sales volume has rebounded since.

Most property analysts are still upbeat with the outlook.

Beijing Huayuan Group president Ren Zhi Qiang said: "It is estimated that this year's total sales by area will drop by 10 to 15 per cent, compared to last year, but it will still hit 800 million square metres.

"The number of people getting married will peak at 2015, at around 20 million couples will form a new family unit in a year."

-CNA/wk