‘No signs of overheating’ in Chinese housing market

China has sufficient land supply for residential projects and there are no signs of the market overheating, the Shanghai Securities News reported yesterday, citing an unnamed official from the Ministry of Land and Resources.

While the pace of land transactions has picked up in the last two months, the base prices and premiums have been in line with general trends, said the official.

In last month and this month, the number of land transactions at higher than average prices fell, and premiums were lower than the records set during the same period a year earlier, the official said. In May and June, there were a few cases of land transacted at high prices but they were at good locations where land was scarce, the official said, adding that they were mainly for commercial use and so would have little impact on the housing market.

In June, Chinese property developer Evergrande Real Estate Group set a record for land prices in Guangzhou when it bought a plot in the city for the equivalent of 32,968 yuan (S$6,430) per sq m. That price was almost double the 17,933 yuan per sq m paid by rival Changyuan Real Estate for a parcel of land in the same area last year, local media reported.

The Ministry of Land and Resources will continue to monitor the market, implement property controls to keep land prices stable, the official added.

Source : Today – 28 Sep 2012

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