As local concerns rise about the capital's skyrocketing housing price, nearly 40 percent of real estate tycoons were forecasting it will grow another 20 percent this year at Beijing's biggest property fair that began on Thursday.
The Chinese government should quicken the pace of changing the land bidding system and increase land supply to curb another round of property price rises, industry experts said on Tuesday.
Land-use rights for three plots in Beijing were auctioned off for record prices within two days at the end of the National People's Congress (NPC) annual session, which ironically had decided to rein in the skyrocketing housing prices. The successful bidders, as in many cases, were State-owned enterprises (SOEs).
The recent wild surge in house prices has triggered worries about asset bubbles, but what could be more detrimental is its impact on public confidence in government policies.
Without the support of homebuyers, huge amounts of capital will be needed to prevent the real estate bubble from bursting.
Housing prices in China are likely to be stable in 2010 and the number of houses to be sold will drop, an expert said at a real estate session of Boao International Tourism Forum on Saturday.
The unchecked surge of real estate invest-ment by large State-owned enterprises (SOEs) not only sabotages the central government's efforts to prevent housing bubbles but raises questions about the SOEs.
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