Cost of housing skyrockets throughout the country, but Beijing gets the worst
- Source: Global Times
- [04:50 November 18 2009]
- Comments
By Sun Yongjian
The cost of housing in Beijing has risen 20 percent above its actual value, according to the Chinese Academy of Social Sciences Monday.
"Housing prices are soaring off the scale," said Yao Jingyuan, chief economist at the National Bureau of Statistics of China.
According to an analysis of housing prices in 35 cities, the average price of housing in Beijing is 12,205 yuan ($1792.22) per square meter, 25 percenthigher than the benchmark price and much more than Shanghai, Guangzhou and Shenzhen.
"The housing prices have strayed from supply and demand," Liu Jinhe, chief researcher of Samsung Economic
Research Institute told the Global Times yesterday.
According to Liu, housing prices are determined by property companies and individual property owners from all over the country who make staggering profits. One wealthy person in Shanxi Province bought and held over 100 apartments, and is waiting for prices to raise further.
Tang Yong, a researcher at the Beijing Academy of Social Sciences disagrees and says that housing prices are right where they need to be.
According to Tang, one of the major factors responsible for the skyrocketing housing prices has been rich people choosing to buy and rent in Beijing, driving up housing costs for everyone else.
The current housing prices near the Second Ring Road have reached 20,000 yuan ($2936.86) to 30,000 yuan ($4405.29) per square meter.Prices near the Fifth Ring Road have exceeded 10,000 yuan ($1468.43).
Sun Yongguang, a university graduate who has worked for a Japanese company for two years said he and his girlfriend can only earn over 5,000 yuan ($734.21) a month and are forced to rent instead of buy.
Tang added that the government has invested a great deal to build a¡ ordable housing to help average people buy and rent homes.
