According to Zhang Xin, chief executive officer of SOHO China, property prices are likely to continue growing next year despite a slew of macro policies introduced this year to rein in the overheating sector.
"If the fundamental factor, demand far exceeding supply, can't be changed, property prices can hardly drop," said Zhang.
Since the government released a regulation requiring 70 percent of residential apartments to be less than 90 square meters, quite a number of real estate projects have needed to be adjusted or postponed, further dragging down the supply and making property prices rise even higher.
Property prices in
Prices of high-end and ordinary residential properties saw a year-on-year rise of 7.7 percent and 6.4 percent, up 0.7 and 0.1 percentage point compared to September.
As a leading property developer, Beijing-based SOHO China is frustrated with the drop in available land in the capital.
"We are now considering expansion to
The government's macro policies may ease pressure on low and medium-priced residential buildings, but will further increase the price for high-end ones, said global property seller CB Richard Ellis in a report yesterday.
Li Yanhua, chief risks officer of Taikang Life Insurance, is quite optimistic about the future of
"We have bought several commercial buildings this year and will further strengthen our investment in this sector, even in some big and medium-sized cities," Li told China Daily yesterday.
Insurance companies' liabilities are mostly long-term, so finding good long-term assets to match them is pretty important, and real estate projects are among the best choices, Li explained.
"My confidence in
Chen Fan, managing director of the investment arm of Standard Chartered, shares this view.
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Chen cited the huge amount of rural residents moving to the city as one reason for high demand in cities.
