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Chinanews, Beijing, Aug 21 – “In the short or middle term, housing price in China might continue to rise. However, in future, it might drop,” said Ha Jiming, a chief economist1 at China International Capital Corporation Limited, the Economic Information Daily reported.
He made the statement while attending a round-table forum2 on real estate bubbles and housing price control. China's population structure makes the high housing price possible. However, by 2015, housing price might meet a turning point, Ha said. In recent years, housing price has risen substantially in China, which has aroused great concern from the public. Industrial insiders and the public all worry whether bubbles have appeared in the real estate market. In responding to these worries, some experts say that the current housing price is still affordable3 to most consumers. On the whole, Chinese real estate market does not have bubbles. “Overall, the real estate industry has no bubbles. If there are any, the bubbles may only exist in some cities or for some buildings, ”said Shan Weibao, chairperson of the board of directors at the Lujin Basic Construction Company. China's housing problem is not a supply shortage4 problem. The problem is that not everyone has a house to live in. In fact, the dream of most people having their own houses is still a dream. On the other hand, some people have more than one house. The housing resources are not distributed equally. Under this situation, it is sure that housing price will climb, said Chen Huai, director of the Policy Research Center under the Ministry5 of Construction. How long will the housing price rise last? According to Ha, housing price might further climb for another eight years. Despite such rising trend, experts predict that after the Olympic Games, Chinese real estate market might meet a turning point. “The housing price might reach its peak in 2010 and remain stable until 2015. Starting from 2015, the housing price will start to fall,” Ha predicted.
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