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.
Though the government has been adjusting its real estate policies,
skyrocketing property prices could continue to pose a risk in the second half of
the year, raising the possibility that further cooling measures could be on the
horizon, said Zhu Zhongyi, secretary general of the China Real Estate
Association.
"The government could launch measures targeting key cities
if the property markets there get out of control," Zhu said.
"And the
restrained attitude towards foreign investment in the property market shows no
signs of loosening in the next six months."
Meanwhile, real estate
investment jumped by 28.5 percent on a yearly basis, topping 989 billion yuan in
the first six months, according to the NDRC. That was 4.3 percentage points
higher than during the same period of last year and 1.6 percentage points higher
than the first quarter of this year.
"The growth is mainly driven by
second-tier cities," said Eric Chan, deputy managing director of Savills
Property Services (Beijing) Company.
"And we are still
expecting more investment in the property sector in the second half of the year,
but the growth rate depends on the policy and investment environment."
(China Daily 07/24/2007 page 3)
Vocabulary:
property price：房價
pre-owned house：二手房
Questions:
1. China's
rising property prices are closely linked to what?
2. If property prices continue to rise, what actions will the government
likely take?
3. What tier cities are driving the growth?
Answers:
1. The overall growing
economy.
2. The government could launch measures targeting key cities if
the property markets there get out of control.
3. Second-tier cities.
（英語點津 Linda 編輯）
About the broadcaster:
Suzann Riddle is a senior double majoring in Health Care
Management and Economics at Appalachian State University in Boone, NC. She finds
herself at China Daily Website after visiting many areas of China as a Holland
Fellow, Appalachian's international exchange program with Fudan University.
Suzann Riddle is a senior double majoring in Health Care
Management and Economics at Appalachian State University in Boone, NC. She finds
herself at China Daily Website after visiting many areas of China as a Holland
Fellow, Appalachian's international exchange program with Fudan University.
