Economy

Public wary of property prices

By Yu Ran (China Daily)
Updated: 2010-12-27 12:24

SHANGHAI - Most potential homebuyers in Shanghai are prepared to delay their purchase by at least three years in the hope government will cool the real estate market.

According to newly released results of an online survey conducted by local government about residents' attitudes to buying houses, more than half of those interviewed said they needed to watch market trends for at least three years.

In November, house price registered month-on-month increase for the third consecutive month this year. The gradual growth of house prices reinforced people's doubts about buying houses, as many believed the government might launch a third round of policy reform to cool the market.

"The real estate market in China is sensitive to regulation. Government policies as well as interest rates will largely influence consumers' decisions on whether to buy houses, and this affects the whole real estate market," said Yang Hongxu, a local real estate expert.

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Therefore most people who have plans to buy a house will delay the purchase in the hope that prices will drop.

"I have discussed with my boyfriend. We decided that we will rent an apartment when we get married next month," said Liang Lili, a 25-year-old white-collar employee.

Liang and her boyfriend work in the same advertising company but do not have enough savings to buy their own house. And they don't want their parents to buy an apartment for them.

"I believe that a real estate market bubble still exists. We shouldn't buy an apartment just because we are getting married. We should buy one at a reasonable price," said Liang, who explained that she and her boyfriend would wait at least two years for house prices to drop.

However, there are still people who don't have the patience to wait for that to happen.

"My 29-year-old son is getting married in November next year, which means that we have to buy a house for the newlyweds by the end of next January no matter how expensive it is," said Zhang Tian, a 62-year-old local resident who plans to buy a downtown apartment in the city next month.

Zhang added that he knew house prices were still very high, but the family could not wait for them to drop.