Economy

Home sales in Beijing decrease under govt policies

(Xinhua)
Updated: 2011-05-13 10:56

BEIJING -- Home sales in Beijing plummeted over 30 percent in the first four months of 2011, partially as a result of the government's actions to cool down the city's red-hot property market.

New residential apartment units sold in Beijing over the January-April period totaled 2.59 million square meters, down 32.3 percent from the same period last year, according to data jointly released Thursday by Beijing's municipal statistics bureau and the National Bureau of Statistics.

Related readings:  More land opened up for affordable housing  Majority of population still cannot afford home  Home prices rise in April  SOEs to join subsidized housing projects

New government purchase restrictions and changes in the purchasing habits of prospective homeowners are believed to be the causes of the lower sales. However, the construction of new homes for the first four months of 2011 climbed by 18.3 percent from the same period last year.

Meanwhile, Beijing's investment in real estate continued to rise in the first four months, standing at 64.5 billion yuan ($ 9.44 billion), which accounts for 50.8 percent of the city's total investment in fixed assets.

Beijing rolled out its toughest real estate regulations earlier this year, prohibiting home purchases by families who have not registered locally. The regulations also prohibit families who have no proof of social security contributions or income tax payments in Beijing over the last five years from purchasing new homes.

The new regulations also prevent Beijing families who already own two or more apartments from purchasing new homes. In addition, the ban applies to families who are registered in other cities but already own at least one apartment in Beijing.