Chinese Boom in Housing May Get Lower
China’s National Bureau of Statistics reported continued growth for China’s real estate market although lower income households will have a more difficult time finding affordable housing. As prices rise, available low-income-housing lowers.
While the housing prices reported a year-on-year increase of 12.5 percent in the first quarter, the proportion of economical residences dwindled from 6.1 percent in 2003 to the present 4.6 percent. And the proportion of ordinary commercial houses remains low, NBS spokesman Zheng Jingping said at a regular press conference in Beijing Wednesday and was reported in Chinese newspaper Xinhua.
The driver in part seems to be speculation for real estate. The Chinese government is telling people to buy homes to live in and not invest in officials said. Zheng also mentioned that the government would construct more low-income-housing for folks in the coming months although other measures were not mentioned.
Apparently, the real estate boom seems to be playing a major role in China’s evolving economic dynamo so they desperately want to keep real estate strong. They’ve mentioned tax adjustments and tinkering with interest rates, much like is happening in the U.S. right now.
John Stith is a staff writer for WebProNews covering technology and business.