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Recovery Insight for Mainland Properties
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April 24, 2009 |
The mainland property market may recover in
the second half of the year as the economy
could pick up soon following Beijing's
massive stimulus package, a think-tank said
yesterday. The Chinese Academy of
Social Sciences, launching its property
yearbook in Beijing, proposed some measures
such as reducing land costs, loosening
credit and a tax cut to sustain the healthy
development of the real estate sector.
Property accounted for one-third of the
country's fixed-asset investment and home
sales accounted for a quarter of urban
residents' consumption, the academy said.
"Under the economic adjustment period, high
land prices will lead to unsuccessful
government auctions of large land lots. It
will reduce investment values in property
development," said Li Jingyuan, the writer
of the yearbook. "Local governments
should increase land sales, lower land
prices and adjust sale procedures, ensuring
stable increase in supply for development."
The think-tank also suggested financial
institutions should support quality property
developments.
The academy said the home market could see a
recovery in the second half of this year
after a decline in both transaction volumes
and values last year. Demand would
continue to increase, helped by the stimulus
policies to boost the market and improve the
economy, it said.
Cities that suffered bigger corrections
could recover sooner, it added.
According to the yearbook, Shenzhen property
prices fell 15 per cent in December last
year from a year earlier. Prices fell
5 per cent in Guangzhou but rose 1 per cent
in Beijing. In Shanghai, prices fell
in the last two months of 2008.
Source: South
China Morning Post |
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