Business / Markets

Beijing's property price expected to rise further this year

By Hu Yuanyuan and Yan Dongjie ( Updated: 2016-03-04 16:08

Beijing's property price is very likely to continue to rise this year though not as fast as Shenzhen's skyrocketing pace, CPPCC National Committee member said on Friday.

According to Huang Qisen, a CPPCC national committee member and chairman of Thai Hot Group, the property price hike in the first-tier cities such as Beijing, Shanghai, and Shenzhen since the beginning of this year is partly due to the government's monetary easing policy and the imbalanced supply-demand relationship.

"The price increase, however, also has a solid foundation due to the strong purchasing power of wealthy people in those cities and the continuous influx of new comers," said Huang. "But as developers, we don't like big property price fluctuations."

As Beijing adopted the country's most stringent home purchase policies, Huang believe there is little chance for the capital to see a skyrocketing property price like Shenzhen has experienced in the past year. The home price in Shenzhen has seen an increase of more than 70 percent in the past 12 months, according to Urban Planning, Land and Resources Commission of Shenzhen Municipality.

"I don't expect the central government will issue new real estate policies after the two sessions, but the local governments may do," said Huang, adding short-term policies like "zero down payment" in Shenyang is unadvisable and will hurt the long-term scheme.

To destock, China's Northeast city Shenyang on March 1 issued a notice that said that college graduates and secondary vocational school students will be able to buy property with zero down-payment. However, it later said the government was still studying the policy and was not rolling it out yet.

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