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China sees boom in real estate sector
( 2003-04-24 10:43 ) (8 )

Real estate prices in 35 major Chinese cities jumped significantly during the first quarter of the year, according to official statistics reported by China Daily Thursday.

The price index in the cities increased by some five percent during the January-March period over the same period last year, according to figures jointly released by the State Development and Reform Commission (SDRC) and National Bureau of Statistics.

"The price rise is justified by the country's robust economic development during the same period," said a SDRC representative surnamed Tang.

But the real estate was growing too quickly in some regions, Tang warned, such as some cities in east China's Zhejiang province, where over 20 percent of increase in housing price and land were reported.

Despite excessive development in regional areas, the nation's real estate industry was healthy, he said.

During the first two months of this year, about 60 billion yuan (7.2 billion US dollars) has been invested in real estate development, 68 percent of which was used in commercial housing construction. The year-on-year growth rate stands at 37 percent, according to figures.