http://english.cctv.com/program/bizchina/20100122/102839.shtml
Beijing is certainly a city on the rise. Figures in 2009 show per capita GDP in the city hitting above 10,000 US dollars for the very first time. And that makes Beijing only the second city after the financial hub of Shanghai to make that grade. But also spiraling upwards is the price of real estate. Yang Fei explains what central and municipal authorities are doing to tackle an ongoing problem. According to the latest figures from Beijing's statistics bureau, the city's GDP in 2009 grew 10.1 percent, surpassing the national level of 8.7 percent. Meanwhile, Beijing's housing prices began a sharp rebound after August of 2009. Sources say average prices of new properties in the city hit close to 20,000 yuan, about 3,000 US dollars, per square meter in December. The municipal statistics bureau says the surge is due to easy financing policies and confidence in the economy. Yu Xiuqin, spokesperson of Beijing Municipal Statistics Bureau,said, "Both the central government and municipal government have taken note of soaring house prices, and have launched a series of policies to stabilize the market. Land reserves worth a 100 billion yuan have been set aside, as one measure to put a curb on prices." Yu says more social welfare housing will also be made available in Beijing this year, in another move to stabilize the property market. ------------------------------------------------- My comment: I tell my friends and my colleagues in the West (mostly in Madrid) that we, Chinese, are misunderstanding the problem. Housing in Beijing, and in all major cities in China, will raise and raise along next coming years or decades. Although much cheaper than sq. meter is in major cities around the world, it is true that housing is expensive compared to wages. That is one issue China s authorities in most cities have to address and are addressing when promiting social housing. Other rules such as taxes on second house, taxes if owners sell it before a certain number of years after acquisition, higher restrictions in mortgage loans, etc. might have as many advantages as disadvantages. Sometimes it might cool the currently hyperactive housing market, what is good, but other times taxes will be transferred to next owners through prices. Thus its influence on price inflation will be neutral, probably. We plainly have to understand that sooner or later price of housing in Beijing or Shanghai or any other city will be as high as in Tokyo or Singapore or New York. Our only focuss should be that this fact will not become a poblem for regular citizens and every Beijinger can access to ownership through social housing. Until one square meter in Beijing is as high as in Tokyo we will have the same story. Let us learn from Guangzhou and special areas in Guangdong. We can have an area where speculators and foreigners can speculate freely, their money their risk. But let us prevent them to get access to regular areas in Bejing, or in any other city. For example by requiring residence permit to acquire houses in regular areas or by taxing much heavier non-resident owners in regular areas. In that way, price rise in speculative areas will skyrocket, but in regular areas it will moderate its pace of rise. Peace and best wishes. Xi -- You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/world-thread?hl=en.
