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Housing price up 5.5% last year

(Xinhua)
Updated: 2007-01-20 16:49

Housing prices on the Chinese mainland rose by an average 5.5 percent last year, industry observers estimated on Friday, using the latest data from the State Development and Reform Commission and the National Bureau of Statistics.

In December, housing prices in 70 major cities rose 5.4 percent on average over December 2005, up 0.2 percentage points from the previous month's rise.

The bureau said new apartments nationwide were priced 6.3 percent higher in December, up 0.5 percentage points from the previous month's growth rate.

Beijing and Shenzhen recorded the highest growth rates. The average price hike for new condominiums was 10.4 percent in the capital and 10 percent in the economically thriving Shenzhen, in south China. Meanwhile, second-hand homes were priced 10.3 percent higher in Beijing and 11.4 percent higher in Shenzhen.

Housing prices continued to soar despite government efforts to regulate the real estate market, industry observers commented.

The continuing rise in housing prices has prompted debate over measures to stabilize the market, including the establishment of a housing security system, further curbs on credit extensions for property developments and raising the threshold for land appropriations. Financial and taxation instruments were also recommended.


(For more biz stories, please visit Industry Updates)



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