Property prices continue to rise
By Hu Yuanyuan (China Daily)
Updated: 2006-07-21 08:37
"Even with these macro control measures, house prices in Beijing will still
endure a growing momentum in the future, given the strong demand," said Peter
Zhang, a senior manager with DTZ. "But the growth rate may slow
down."
Statistics show that eight cities saw new residential housing
prices fall in June from the previous month. Shanghai had the largest drop
5.4 per cent down from house prices in May.
"This shows that the real
estate bubble in Shanghai has been squeezed a little," said Wang from
DTZ.
The price of a second-hand property increased on average by 4.9 per
cent year-on-year in June, 0.6 of a percentage point higher than the previous
month.
And that for non-residential properties, such as offices and
warehouses, in the 70 cities rose 5.3 per cent on a yearly
basis.
Meanwhile, a report from DTZ shows that the flow of overseas
capital into China is accelerating, with commercial properties a major
target.
DTZ statistics show that foreign investment in the property
market reached US$4.5 billion in the first quarter of 2006, exceeding the figure
for the whole of last year US$3.5 billion.
Although sources said
new rules to control foreign investment in China's property market have been
agreed and will soon be released, it is unlikely to stop the flow of overseas
capital, analysts predicted.
"These measures will make highly speculative
investors think twice, but will not affect long-term investors who are confident
in China's economic prospects," said Nicholas Cho, director of DTZ's investment
department.
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