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Real Estate Market Policy Pays Off
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China's policy of exerting tighter control over the real estate market has reaped rewards, according to the Ministry of Construction.

The ministry reports that the investment growth rate has stabilized and house prices have lowered since restrictions relating to land supply and house purchase were imposed in April 2005 to combat soaring prices and the development of improper housing structures.

Figures released by the National Bureau of Statistics (NBS) show that since May 2005 the growth rate of housing investment in China has been lower than the growth rate of urban fixed asset investment each month.

House prices have also steadied as a result of reduced speculation in the real estate market, according to the Ministry of Construction.

The NBS said that in November 2005, although house prices in 70major Chinese cities went up 6.8 percent, the growth rate was lower than that of the same period in 2004 and that of the first quarter of 2005.

According to an investigation into China's 40 major cities, trade involving high-standard flats or luxury villas decreased, while the trade on medium and low cost houses surged.

(Xinhua News Agency January 30, 2006)

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