The prices of new homes in Beijing declined 11.3 percent year-on-year in 2011, as the cooling measures imposed by the central government take hold.
According to the Beijing Real Estate Association, the average price of new homes in the capital fell to 13,173 yuan (S$2,659) psm in 2011, when 78,000 units were estimated to have been sold.
Chen Zhi, Secretary General of the association, said the government has achieved its 2011 objective, which was to ensure that property prices stay flat or fall.
China’s housing market has cooled down following the implementation of new policies aimed at curbing speculation. These policies include second home purchase restrictions and increased deposit requirements.
The association revealed that around 90 percent of housing purchases went to families who did not own any property, indicating that the measures have purged out speculative capital in the housing market.
The city has also increased the development of low income housing projects. In 2011, a total of 32,000 low income housing units were sold, an increase of 38.5 percent from the previous year.
Meanwhile, a total of 200,000 new and second hand homes were sold in Beijing last year, down 30.1 percent from 2010.
Furthermore, the authorities said that housing curbs will remain in place until prices are brought down to “reasonable levels”.
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