The rapidly growing economy in the next five to 10 years will bring about further growth in Beijing's real estate market, said Song Yu, director of the municipal development and reform commission's investment section.

Per capita GDP amounted to US$3,800 in Beijing, which would undoubtedly grow in future years, Song said, and there still remained a relatively large requirement for housing in Beijing, so citizens would spend more on real estate, pushing the market's development.

According to the commission, an average of 200,000 apartments will be sold each year before 2010, and the majority prefer a floor space measuring 80 to 100 square meters at a price of 2,000 to 5,000 yuan (about US$242 to 605) per sq. meter.

Song said the municipal government would standardize Beijing's estate market, cracking down any form of fraud.

The government also encouraged citizens to buy new apartments and sell their old ones, because the price of secondhand housing would possibly decline along with the large scale reconstruction in Beijing for the 2008 Olympics, he said.
 
(Xinhua News Agency April 1, 2004)