Lowest Average House-price in Beijing, But Still Double the Average in China

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Last updated at: (Beijing Time) Friday, June 06, 2003

Lowest Average House-price in Beijing, But Still Double the Average in China

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According to the latest statistic data from the Beijing Municipal Statistic Bureau, 2002 saw the average price for commodity houses to be at RMB 4764 yuan/psm, a decrease of 298 yuan/psm as against the same period of the previous year, the lowest ever since 1997.

This is because of the influence by the price-factor for economically built apartments being put into the market. However, the price remains still at the highest, double the average house-price in the country.

As compared to the average price of 4121 yuan/psm the price in Beijing is 15 percent over that in Shanghai. And contrarily, the average disposable income in Beijing in 2002 was 12,500 yuan, six percent lower than that of Shanghai.

Why the house-price remains at a high level is directly connected with the land price and disorderly operation in the real estate market. Judging from the present situation in Beijing the land resource in the coming 5-10 years should not constitute a condition restricting the development of the realty business.

Based on the data from the State Administration of Land Resources, the land-use for living quarters in Beijing comes mainly from the following aspects: first, the reconstruction of the old houses in jeopardy, the land available being at around 20 million square meters; second, the land for industrial use, of which the land area can be transferred will reach 6 million square meters; third, the land use for green belts of which the planned residential area is about 21.8 million square meters; and fourth, the house construction for peripheral groups. In addition, the construction of satellite and central towns can also provide some reserved land resources for the construction of residence. Therefore, what needs to be considered is to regulate the operation of the real estate business. Strictly speaking, Beijing sees too many realty dealers but a reasonable mechanism of market competition still hasn't come into being, which requires to be further guided and brought to a regulated order.

By People's Daily Online

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