Shanghai home prices dip as supply rises
Updated: 2007-12-07 09:12
Housing prices in Shanghai have fallen sharply as potential buyers are holding back purchase plans in the hope that they can benefit from a new housing policy to increase supply.
 A man answers his mobile phone in front of a property project in Shanghai. Housing prices in Shanghai have fallen sharply as potential buyers are holding back purchase plans in the hope that they can benefit from a new housing policy to increase supply. [newsphoto]
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"My dream of buying a bigger house seems closer to reality," said Jin Weikang, a 51-year-old worker in a dairy processing plant.
Jin was encouraged by the remarks of Premier Wen Jiabao, who said in a speech at the National University of Singapore on November 19 that China should increase housing supply by promoting low-rent houses and subsidized housing, as well as through market regulations on private housing.
Wen emphasized that subsidized housing should be sold mainly to "the middle-class group".
Like other traditional Chinese fathers, Jin has saved money for years to buy an apartment for his son.
"I gave up the idea sometime in May this year, when housing prices began to soar," said Jin.
He is now living in a 15 sq m, second-floor apartment in an old building with his wife and their 16-year-old son. The family income amounts to about 5,200 yuan ($702) a month, including Jin's salary of 4,000 yuan and his wife's pension of 1,200 yuan.
"We save around 3,000 yuan per month, but it is still hard for us to buy an apartment in Shanghai," said Jin.
Many Shanghai residents and the thousands of white-collar workers from around the country shared Jin's frustration.
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