Commercial housing prices showed a moderate rise in the January-May period in Beijing this year, with the average selling price standing at 5,575 yuan (671.6 US dollars) per square meter of housing floor space, up 8.13 percent year-on-year.

According to the municipal development and reform commission, the main factor behind the rise was the increasing market demand for housing in this period.

The municipality completed construction of 7.67 million sq m of housing floor space and sold 6.91 million sq m of housing in the January-May period, with sales volume increasing by 40.6 percent year-on-year to top 38.55 billion yuan (4.64 billion US dollars).

The rise in the prices of raw materials, land development costs and labor costs helped boost the rise of housing prices in the city, the source said.

The commission estimated that housing prices in Beijing will maintain stable growth and the demand for commercial housing will remain brisk.

Source: Xinhua