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Some housing sales numbers rosier than reality
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Housing prices in Beijing have risen since May. Meanwhile, property developers and their staff create a sense of urgency among prospective buyers, telling them that sales are brisk, and urging them to buy quickly. But in many cases, the rosy description by property developers may exceed the reality of actual housing sales.

A new residential flat located along Beijing's east fourth-ring road just began selling its units several days ago. Salesmen said there were only two condominiums left -- and everything else had already been sold out. But the city's official real estate transaction web site shows that more than two thirds of the condominiums in this building haven't been sold yet. And despite enthusiastic claims by developers, many other housing projects in the city are experiencing fewer sales than eager sales people would like prospective customers to believe.

Yi Xianrong, researcher of Chinese Academy of Social Sciences, says, "it is estimated that Beijing's existing residential properties will be sold out in two-and-a-half years. That's according to data from the municipal statistics bureau. But developers always say property is in short of supply. That's definitely untrue."

The latest official figures show that the price of new property which began selling in May increased by 13 percent over April. But the number of condominiums sold dropped by more than 8 percent. The number of daily deals has also been declining in June. But analysts say property developers often create an illusion of brisk sales -- in order to generate excitement and lift prices.

(CCTV June 23, 2009)

 

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