Source: CCTV.com

05-08-2006 15:01

For many Beijing locals, the May Day Golden Week is not just a holiday period, but a time to think about buying real estate. Realtors, buyers and economists all have something to say on the matter.

Beijing, the city of grey palace walls and blue glaze statues, seems to be a bit confused about the "colors" of its housing market.

This is a typical sales chart of a newly opened Beijing apartment building unit, placed on its website for interested buyers.

Red stands for "sold", pink for "reserved", and green, unsold. The chart is almost entirely green.

But the salesperson says this is misleading.

Salesperson said: "We sell them out fast. It's only been two months since the opening. In one of the buildings, 85 percent of the apartments have been sold."

Another apartment building unit just a short walk away opened just nine days ago.

Salesperson said: "In our building, No. 16, there are 200 apartments: over 100 one-bedroom apartments and 60 odd two-bedroom ones. 70 percent have been sold."

To buy, or not to buy, for many people looking to purchase real estate in the city, this question calls for a whole family discussion before an answer can be given.

Once a decision is made, a more complex planning process pops up.

Buying, taking out a loan, and perhaps paying it off ahead of maturity.

Housing buyer said: "It's possible for us to pay off ahead of schedule. We have two generations of family members making money."

In this golden week of May Day, many families have made the same decision. They turn away from holiday plans for a few days of bargaining and calculating. But some economists say it's better to stay cool.

Yin Zhongli, Doctor of Financial Studies of China Academy of Social Sciences said:

"My suggestion for those eager house-buyers is to stand aside a little bit, look on, and wait for a while. I don't think housing is out of supply."

Statistics show that 60 percent of apartments remain unsold. But is this enough, if we take into account the city's huge population?

And will the real estate bubble burst and bring prices down? The same prediction was widespread in 2005, but the reality turned out to be otherwise. Some say the current heat-up is because people's desire to invest had already been suppressed for a whole year.

Bubbles come and go. But while no one can tell when it will burst, it is undeniable that it exists.

 

Editor:Wang Ping