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No govt help for developers

(China Daily)
Updated: 2009-01-15 07:39

Beijing Mayor Guo Jinlong's remark smashed some developers' hopes that the government will help them maintain the extremely high house prices, says an article in Beijing News. The following is an excerpt:

Guo Jinlong, Beijing mayor, said recently that extremely high housing prices are an important reason for the stalemate in the real estate market in Beijing. Guo also said that the government would not support this type of high-price housing market.

Guo's remark has dealt a heavy blow to the housing market in Beijing, which features high prices and low transaction.

According to a latest report, the ratio of housing prices to incomes is 15 times in Beijing, three times the international standard, which is only 5 times.

It's obvious that houses are too expensive in Beijing - the average selling price of a house was 13,141 yuan ($1,920) in the first three quarters of last year while the disposable income of local residents was only 21,989 yuan ($3,210). Some developers still pin their hopes on the support of government to revive their sagging sales and even fantasize about a new round of price rise.

(China Daily 01/15/2009 page8)