[Homestead] China (and U.S.) who gets the money, shaft in house prices
tvoivozd at infionline.net
Tue Sep 21 15:54:07 EDT 2004
China Urges Local Governments to Control Soaring Housing Prices, Amid
Warnings of Possible Correction
*By Elaine Kurtenbach* The Associated Press
Published: Sep 21, 2004
SHANGHAI, China (AP) - China's construction ministry has warned local
authorities to curb soaring real estate prices, amid warnings by some
analysts that the market may be headed for a correction.
The ministry urged local officials to boost the supply of low-cost
housing, saying a shortage of affordable homes has left the market
unbalanced and driven prices higher, the official Xinhua News Agency
The average housing price nationwide in the January to August period was
255 yuan ($30) per square foot - up 13.5 percent over the same period
last year, it said.
Prices in major cities have risen much higher, much faster, with the
average housing price per square foot in Shanghai about twice that figure.
The central bank warned last month in a quarterly report that a change
in policy was needed to prevent a speculative bubble that could lead to
a collapse in prices and put further strain on the country's fragile
Banks have also been told to cut back on lending for property
development and other construction.
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