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China's
Real Estate Industry in a Boom
China is expected to increase 5.5 to 6 billion square meters'
of housing floor space, or 70 million sets of houses in the
coming ten years, said Yang Shen, chairman of China Real Estates
Association.
Statistics
from Ministry of Construction show that from 1980 to 2000,
China's real estate industry had kept a rapid growth momentum
with newly-built houses in rural and urban areas to have reached
20.3 billion square meters, an increase of two folds as compared
with the past 30 years.
Chinese
government has taken real estates industry as a new drive
for its economic growth, and has taken various measures to
support the industry. So far, total investment in real estate
hit 80 billion Yuan in China, accounting for 25 percent of
the social fixed asset investment.
Experts
predicted that as people's living condition has been raised
continuously, and housing consumption will become an important
motivation for economic growth. Therefore, to own a spacious
and comfortable house will no longer be a dream for Chinese
people, the current housing floor space for each resident
being 20.4 square meters on the average.
According
to this development speed, the average floor space for each
house will be increased to 90 - 120 square meters from current
70 meters and average floor space for each resident will be
increased to 35 square meters.
Experts
say that China's real estate market promises a great potential,
but it sees an unbalanced development, and it may incur certain
risk during its rapid development.
Up to
now the idle commercial housing floor has space reached 73
million square meters, the mainly reason being that housing
design is not reasonable and bad location.
Restricted
by economic development level, requirements for houses are
quite different due to different regions and different people,
and housing consumption sees strong regional and multilevel
characteristics. Experts warn that housing construction should
be carried out based on the real needs and blind construction
should be prevented.
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