Shanghai   Chinanews, Shanghai, July 12 – China aims to control the soaring housing price in 2007. However, as half of the year has already passed, China now faces a new round of housing price rise, the Shanghai Securities Journal reported.

 

The China Real Estate Index System (CREIS) Shanghai Office on Tuesday released a set of figures. The information shows that in June, CREIS Shanghai index reached 1,375 points, up 35 points from May and increasing by 6.6% compared with last year. In Beijing, the sales price of newly built houses increased at an average rate of 10.1% from January to May. In Guangzhou, the average sales price for new houses built in the city's most central downtown areas was above 11,000 yuan per square meter. The sales price for houses built in the city's suburban areas also reached above 8,851 yuan per square meter.

 

The high housing price in first-tier cities has now spread to some second-tier cities and large cities in the middle and western regions. In 2007, the housing price growth rates in Chongqing, Nanjing, and Beihai, are among the highest in China.

 

China's large population makes land become a scarce resource. In addition, as urbanization process quickens, land supply becomes insufficient. In many places, housing construction speed cannot catch up with the growing demand for houses. All these factors have caused the housing price to rise continuously, some analysts say.

 

At present, Chinese government has kicked off a nationwide campaign that aims to audit the land transfer fees and land exploitation management funds in ten big cities in China. Local governments in Beijing, Shanghai and Shenzhen also have begun to take some measures to control the local real estate markets. With these measures, it is hoped that the price fever in the real estate market can be cooled down to some extent.