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Chinanews, Beijing, April 14 - According to a report by the Market News, there is a great oversupply1 of commercial houses in Beijing at present. Though the houses available in the market can meet the needs all through 2007, their price still keeps rising sharply. Nowadays, it is very difficult to find houses cheaper than 8,000 yuan per sq m inside the Fifth Ring Road.
Though the central government have composed a series of regulations to control the housing price in Beijing, all of them have proved to be ineffective at all. In last January and February, housing price in Beijing leapt by nearly 10%. Actually, the housing market is not that hot as it appears. In the first two months of this year, only 9,935 and 5,372 houses were sold respectively, while the figures in 2006 were 13,181 and 9,465 respectively. Obviously, demand does not exceed supply in Beijing's property market. "Unreasonable2 housing prices should definitely be blamed for the drop of housing market in Beijing," said an expert. "The number of houses sold, and their coverage3 are both dropping fiercely." Take Dongcheng District as an example, where the average price for ordinary commercial residences is some 21,600 yuan per sq m, but the average disposable annual income of each resident here is only 20,665 yuan. "I believe that the government should enhance the exercising of new regulations to control housing price," said Wang Yumei, a professor of China University of Political Science and Law. Another expert think that people with invested-interest in the overheating housing market are spreading fake information to misguide the general public and to resist the regulations of the government.
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