Housing prices will not plummet in the foreseeable future based on market principals, Lang Xianping, a well-known economist said on May 26.

“I’ve seen predictions by some insiders of a possible drop in housing prices, citing a 23 percent real estate inventory rate. But I have to say I disagree with them,” said Lang during a real estate forum held in Pingtan, Fujian province.

He then compared real estate to the garment industry, saying the price will not be affected by the stock.

“The inventory rate of clothes is 500 percent. Has anyone ever seen a tumble in the price?”

He also suggested people invest in real estate, saying that the growth rate of the housing price is likely to beat that of CPI, a gauge of inflation, by almost one percent.

Asked about how to select a house with promising future, Lang said there are four criteria in general – location (in downtown or in the Pingtan Free Trade Zone), proximity to schools, transportation convenience and if it is the first home for the buyer.

Lang Xianping, a well-known economist, breaks down the domestic housing market in Pingtan, Fujian province, May 26. [Photo/ptnet.cn]