Property prices up 7.1% in major cities

By Hu Yuanyuan (China Daily)
Updated: 2007-07-24 08:40

A ballon rises in front of buildings in Shanghai. Property prices in China's 70 large and medium cities rose by 7.1% on a yearly basis last month. [newsphoto]

Property prices in the country's 70 large and medium cities rose by 7.1 percent on a yearly basis last month despite the government's efforts to cool down the market, the National Development and Reform Commission (NDRC) said yesterday.

The growth rate, the highest since 2006, contributed to the strong economy, experts said.

"China's sizzling property market is closely linked with the overall economy," said Anna M Kalifa, head of the research department at Jones Lang LaSalle Beijing.

The country's gross domestic product grew by 11.5 percent in the first half of the year, beating experts' forecasts.

Beihai, Shenzhen, Nanjing and Beijing led the country in terms of price increases, with growth rates of 15.5 percent, 13.9 percent, 11.3 percent and 10 percent, respectively. Beihai, a small city at the southern end of South China's Guangxi Zhuang Autonomous Region, has been at the top of the list for four months in a row, reflecting the strong growth in second- and third-tier cities.

June and July are generally key times for property deals, not only in China, but also for the entire world, Kalifa said.

"Property prices in China will continue to grow in the next half of the year, but at a slower pace," Kalifa told China Daily. "We expect the property price to grow by around 8 percent from January 2007 to January 2008, and we've seen most of that growth already."

The sales prices of pre-owned houses jumped by 7.8 percent last month. That was one percentage point higher than in May. Shenzhen and Beijing are still among the top four cities in terms of price hikes, with growth rates of 16.1 percent and 9.4 percent, respectively.

(For more biz stories, please visit Industry Updates)

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