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Chinanews, Beijing, Dec. 14 – In November, housing price in 70 Chinese cities rose by 10.5% and the sales price of newly built commercial houses rose by 12.2% compared with the same period last year, said Cao Changqing, head of the Pricing Department at the State Development and Reform Commission, on Thursday.
Earlier this year, housing price increase rate had hit a new high point for five consecutive1 months ever since China started to collect housing information on a monthly basis in July, 2005. From January to November, housing price in 70 Chinese large and medium-sized cities rose by 7.3%. Of this, the sales price of newly built commercial houses rose by 7.9% compared with the same period last year. The housing price rise will affect many industrial sectors2. So it will not be an easy task to bring the price down. China will strengthen efforts in the control of housing price and will try to solve all the problems in order of importance and urgency. It is hoped that with the government's efforts, China can finally solve its housing problem, Cao said. In Shenzhen and Guangzhou, where housing price used to grow by a relatively3 large range, the housing sales price now has begun to decline. In cities like Shenzhen, Guangzhou, Shanghai and Beijing, they used to have some housing projects that enjoyed good sales. Recently, however, transaction volume for these projects has also started to shrink, too, said Cao. Cao stressed that, although it was difficult to tell at present whether the drop of housing price would last long, as Chinese government had further implemented4 its macro control measures, China could bring the housing price under control and such housing price would finally become affordable5 to the Chinese public.
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