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Housing prices jump on rising demands, costs
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Rising demand and costs are driving up average housing prices across China, National Bureau of Statistics spokesman Li Xiaochao told a news conference today.

 

Average housing prices in 70 major cities jumped 8.2 percent in the third quarter of this year, compared with 6.3 percent in the second quarter and 5.6 percent in the first quarter.

 

Over the first three quarters, housing prices grew 6.7 percent, led by the city of Shenzhen in southern China's Guangdong Province, Li said.

 

Prices in Shenzhen jumped 15.7 percent in the period from a year earlier, followed by Beihai (12.1 percent) and Beijing (10.1 percent), Li said.

 

Prices for new residences grew 7.2 percent in the nine months and prices for second-hand homes rose 6.6 percent.

 

Li didn't provide any figures for Shanghai.

 

The rapid growth of China's economy and average incomes spurred the demand for houses, along with speculators buying multiple homes, Li said.

 

"The inadequate supply also helps stimulate housing prices, especially the supply of lower priced homes," Li said.

 

The rising cost of land acquisition and higher prices of construction materials contributed to the growth of housing price, Li said.

 

In the first three quarters, the trading price for land rose 12.8 percent on average in the 70 major cities, with 15-percent growth in the third quarter, Li said.

 

(Shanghai Daily October 25, 2007)

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