Economy

Beijing real estate market cools in Jan.

By Zuo Likun (chinadaily.com.cn)
Updated: 2010-02-02 11:23

Beijing's real estate market trade plummeted in January with the price of property barely changing from the previous month, as the municipal government aims to curb investment-led demand in the housing market, Economic Information Daily reported Tuesday.

Sales of both ready-made homes and future-build properties almost halved from that of December in Beijing, with second-hand house trade down nearly 70%, the report quoted statistics from property agencies.

Demand decline and police restrictions are believed to be behind the market face-about, said Meng Qi, market analyst with US-headquartered real estate brokerage Century 21.

The trading boom in 2009 overdrew both supply of fine housing and sustainable demand, especially when property price skyrocketed in the second half, Meng said.

The Beijing government's move to launch more rules on the real estate sector, in a bid to curb overheated housing development while offering more low-cost apartments for the mass middle-income earners, disheartened market confidence in property trading.