A SENIOR Beijing government official has moved to bolster foreign confidence in the city's real estate market by promising to ensure steady growth and no dramatic fluctuations in prices.
Vice-mayor Zhang Baifa said the real estate market in Beijing was becoming promising with an expected increase in demand and proposed infrastructure development which would enhance the market's growth potential.
He also appealed to developers to use 'lower-end raw materials' in their projects in order to maintain cheaper sale prices.
He said some developers were using 'extremely expensive and high quality' materials to improve quality, and the resulting selling prices were boosted to an unnecessary high level by the increased development costs.
Mr Zhang spoke at the opening of the Second China Beijing Real Estate Fair, which is aimed at attracting foreign investment and boosting the city's real estate market.
The fair also provides an opportunity for trading and discussion on real estate investment policies. It is organised by the government-owned Beijing Real Estate Management Bureau and the semi-official organisation, China Real Estate Association Marketing Committee.
More than 120 real estate companies involved in some 200 property projects in Beijing and elsewhere in the country are taking part. Hong Kong property powerhouses such as Sun Hung Kai Properties, Henderson Land Development Co and Wharf (Holdings) are participating to introduce their property developments in Beijing.
