A new bullet train service between Beijing and China's "coal capital" Taiyuan was launched Wednesday, offering hope of a boost to the Beijing's sluggish real estate market.

The No.D2002 CRH train left Taiyuan, in Shanxi Province, at 8:31 a.m., and hit a maximum speed of 250-km per hour to reach Beijing 2 hours and 59 minutes later, cutting five hours from the rail journey.

Eight CRH services will operate daily on the route, which could bring up to 4,976 more passengers and a glimmer of hope to Beijing's real estate market, which suffered a 33.4 percent year-on-year drop in investment during January and February to about 12 billion yuan (1.76 billion U.S. dollars).

Shanxi Province, the largest coal production base in China, also "produces" wealthy coal industry home buyers.

Pan Shiyi, chairman of property developer SOHO China, said Shanxi people had invested 700 million yuan, buying up 50 percent of its two largest residential projects in Beijing.

"The new bullet train saves time for Shanxi people coming to Beijing, and could motivate them to move here for a more developed cityscape, and for better education opportunities for their children," said Pan.

Chen Yunfeng, secretary-general of China Realtors' Collaboration, a non-profit guild of China's real estate industry, said, "Shanxi people have a tradition of investing, and they may grasp this as a golden opportunity as the real estate market is in a downturn now. We could see the benefits in, at most, three months after the new bullet train starts service."

However, many coal mine operators in Shanxi live far from Taiyuan, where the train departs, including a coal mine owner surnamed Li.

"It takes me four hours to get from my hometown in Changzhi to Taiyuan, so I'd rather drive to Beijing or take a plane," said Li. "I am willing to buy property in Beijing not because of the new bullet train, but because of its potential to grow in value."

Source: Xinhua