Latest News:  

English>>Business

Urban property prices about to split

(Global Times)

09:15, January 14, 2013

According to a report released by the China Index Academy last week, land markets in first-tier cities are expected to soon face supply shortages, leading to rising residential prices in the future; while property prices in most third- and fourth-tier cities will likely go down due to ample land supplies and weak potential demand.

Obviously, the differentiation in the upstream land market will eventually be reflected in supply, demand and price changes in the housing market. In first-tier cities, land shortages will prop up home prices, increasing financial burdens for potential home buyers; while in smaller cities, land oversupply will not only cause resource waste but also lead to property depreciation. With such differentiation, it would be increasingly hard for the government's housing policies to achieve their desired effects.

Authorities must adjust land quotas to strike a balance between supply and demand in various local markets. Moreover, the government should also make efforts to guide rural populations into third- and fourth-tiers cities instead of big metropolises during the urbanization process.

The author is Feng Haining, an economic commentator.

We recommend:

Mainland, Taiwan airlines sign co-op contract

Great changes in Zhengzhou railway station

Wanda Group ventures onto the global stage

Sports car makers look to mainland market

Top Ten Economic Events in 2012

'Gold road' laid with gold bars

Email|Print|Comments(Editor:梁军、厉振羽)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Winter training in snow forest

  2. Weekly review of military photos

  3. Parade of 1,000 Polleras held

  4. Life is an education

  5. Smoggy weather engulfs large areas

  6. Some 3,000 job vacancies provided

  7. 1st individual user of grid-connected PV power

  8. Jay Chou promotes new album

  9. Lang Lang performs New Year Concert

  10. TCL puts name on Hollywood

Most Popular

Opinions

  1. Drinking water safety is not a simple problem
  2. Japan's envisaged 'warning shots' dangerous
  3. When Chinese wives meet American mothers-in-law
  4. Will you leave a city because of cold?
  5. Labor system reform renders salute to Constitution
  6. China's yuan unlikely to appreciate sharply in 2013
  7. Good times gone?
  8. Salaries stifled amid sluggish exports
  9. China to surpass U.S. by 2049: report
  10. Proposed Beijing law seeks data on charities

What’s happening in China

China's social trust index declined further last year, according to the Annual Report on Social Mentality of China 2012

  1. Healthy debate over Beijing's air quality
  2. Beijing air pollution reaches dangerous levels
  3. 5 dead, 19 injured in SW China coach accident
  4. Earthquakes blamed for fatal SW China landslide
  5. Rail policeman with a good heart