Policy's uncertain future spurs property sales

People in some Chinese cities are rushing to snap up properties before the year's end as banks tighten credit. But many home buyers are also taking advantage of the government's preferential policies amid concerns they will not continue next year.

Ms. Liu has been looking to buy the right home at the right time. Now, she is inking the contracts for her new property in Beijing.

Ms. Liu, home buyer in Beijing said "I have looked around at houses and now I want to buy. Additionally, I heard the preferential policies will not continue next year. Now there are just two months before the year ends. I want to buy before it was too late."

Ms. Liu is is one of many buyers eager to capitalize on the government's preferential housing policies. Property sales have surged in some Chinese cities on the back of concerns the policies will not be renewed.

Zhao Qiang, Manager of CITIC Bank said "Sales recovered obviously at the end of October and beginning of November. It is most likely related to people's expectations for the policies to change."

Hu Jinghui, Vice-President of 5I5J.com said "Sales surged by 35 percent in the first week of November compared to the same period of September."

In Shanghai, 13-thousand apartments were sold in October. During the second half of the month, 1-thousand units were sold every day. In Beijing, property sales stopped falling in October after three months in decline.

Transactions for houses under construction and completed houses rose 34 percent and 69 percent respectively from September. Most sales were finalized during the second half of the month.

Insiders are still uncertain if preferential policies will be cancelled. But they have hinted banks will continue to face a rush for credit by consumers in the second half of this month.