China to Double Residential Land Supply

May 13, 2011 / Russell Legato, Residential Property Analyst

As residential land prices in Great Britain grew by 12.5 percent over the last six months because of developers competing to secure areas  with planning permission and exposure to the city’s booming housing market, the supply of land available for housing development in China will be increased as the government plans to curb the country’s runaway property market.

China to Double Residential Land Supply

In a press conference in Beijing on Thursday, May 12, 2011, China’s Ministry of Land and Resources (MOLAR) said that the government is aiming to free 218,000 hectares of land to be used for housing development in 2011, nearly doubling the number of available housing land in the last two years.

MOLAR land use and management director Liao Yonglin also said that the action is part of China’s grand plan of building 36 million affordable housing units for low-income families in the next five years.

Increasing the number of small and medium-sized housing units is a better for the Chinese government to cool the property market, expressed private Beijing-based company China Index Academy (CIA) President Chen Sheng.

In the meantime, the prices of houses for April continued to rise in 77 of the 100 countries being monitored by the CIA. Of the whole figure, only 22 cities, including Beijing and Tianjin reported month-on-month declines.

On the other hand, prices of commercial homes almost doubled in the biggest cities of China during the last two years. It was primarily caused by increased lending and speculation in the previous global economic downturn which triggered complaints from would-be home buyers who couldn’t afford the higher prices.

China’s top statistics agency, the National Bureau of Statistics (NBS) will release the real estate figures for April of 70 cities on Wednesday next week, May 18, 2011.

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