The latest figures from China’s National Bureau of Statistics show that residential property prices rose again in July and August. Property prices in 70 large and mid-size cities throughout China rose 2 percent in August from the same time in 2008 and 0.9 percent from July. Investment in real estate also rose for the year, increasing 14.7 percent from January to August.
The price rise is being led by the eastern cities of Shenzen and Jinhua and has been helped by measures that the central government has undertaken to help the economy. These include tax breaks and investment in the real estate sector, which is a key driver of the country’s economic recovery.
For the first eight months of 2009, the value of property sales in China rose by 69.9 percent, which is an increase from 60.4 percent for the first half of the year. New bank loans in July were down from record highs that came in the first half of the year, but even this has not seemed to put a damper on the real estate sector. Investment in property development for the year has also grown, and is now up 14.7 percent from January.
Xing Ziquiang, an economist at China International Capital in Beijing, predicted that “Property investment will grow by 20% this year and it will continue to be a driving force for China’s growth this and next year.”
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