| Ren Zhiqiang: Beijing Housing Prices Reasonable
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Ren Zhiqiang believes demand for real estate will continue in the long run. |
Housing prices in central Beijing are stable, although property prices in the suburbs have fallen, according to Ren Zhiqiang, member of the Beijing Municipal Committee of the Chinese People's Political Consultative Conference and president of the Beijing Huayuan Group. Ren calculates that, assuming an average annual income of RMB 40,000 as revealed by the Beijing municipal government's work report and taking into account the Housing Accumulation Fund, the average Beijing house purchaser commands a total income of around RMB 60,000, which matches the capital's housing price level. "The average housing price in Beijing is not likely to fall below RMB 10,000, and the current housing price is in fact less than 1/10 the average in Washington." Ren argues that Beijing is not a place where everyone can afford to purchase their own housing. He is convinced that the present downturn is a temporary result of the economy slowdown and the real estate demand will carry on in the long run. |
