SHANGHAI (Dow Jones)–Property investment in China will likely rise by about 25% this year, about as much as last year’s growth, the state-run Shanghai Securities News reported Monday, citing a senior official at a government think-tank.
Wang Juelin, a vice director at the policy research center of the Ministry of Housing and Urban-Rural Development, told the newspaper that with new leadership taking office at local governments this year, growth in new construction would remain at a relatively high level, helping China maintain stable growth in property investment.
Property investment in China grew by 27.9% in 2011 to CNY6.17 trillion ($979 billion), compared with a 33% rise the previous year. Some analysts forecast growth to drop to 15% this year as the central government continues to crack down on the housing market.
Wang said China must maintain its tough stance on the real-estate sector because of strong pent-up demand for property investment.
Over the past two years, China has clamped down on its property sector by tightening lending requirements and limiting housing purchases.
Property sales rose 12.1% to CNY5.912 trillion in 2011, down from the 12.8% growth recorded in 2010. In December, sales fell for the third consecutive month on a year-on-year basis.
Newspaper website: http://www.cnstock.com.cn
-By China Bureau, Dow Jones Newswires; 8621 6120-1200; djnews.shanghai@dowjones.com
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