Intervention helps reverse Beihai real estate slump

PUBLISHED : Wednesday, 09 October, 1996, 12:00am
UPDATED : Wednesday, 09 October, 1996, 12:00am

Government intervention has helped Beihai's real estate market escape from a two-year slowdown, a report says.

More than 400 deals, worth 424.8 million yuan (about HK$395.44 million), were struck in the third quarter, the highest figure for two years.

The coastal city's property market is regarded by experts as a barometer for the country's real estate business.

Over the past two years, in a bid to reverse the slump, the city repossessed parcels of land that had been leased improperly, Xinhua (the New China News Agency) said.

In total, 10.86 square kilometres of land were recovered for property development schemes.

The city also reduced taxes by 550 million yuan to help nearly 1,000 property developers get out of difficulties.

Analysts said the policies had helped to boost the real estate business. One transaction alone was responsible for the sale of 150,700 square feet of flats, they said.

Since June, real estate agencies have begun to increase investment levels. Additional investment in the city's largest property project, the Hengli Ocean Sports Vacationing Centre, hit US$25 million.

Analysts said the Nanning-Kunming railway line, which passes the city and is expected to open soon, had also helped the sector to recover. The impending return of Hong Kong to China was another positive factor, they said.




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