Beijing's move to supply affordable homes unlikely to curb prices: agents
Beijing real estate agents say capital's allocation of land to build homes for owner-occupiers unlikely to have much effect on soaring prices
The Beijing municipal authorities' latest efforts to contain house price inflation will fail, as the measures have not eased market worries about rising home prices due to a shortage of supply, real estate agents say.
The measures, announced last week, are intended to increase the supply of homes for middle-class families who have been priced out of the market but are not entitled to buy government-subsidised flats.
But buyers shrugged off the measures, with sales of flats at new projects remaining buoyant over the weekend. More than 140 flats in phase two of Central South Bay in Beijing's Daxing district were sold within two hours of going on sale on Saturday.
New home releases on that day at Capital International Peninsula and Ocean Palace also recorded strong sales, property agents said.
Kenneth Pak Kei-yuen, a general manager on the mainland for real estate agent Midland Realty, said property sales remained strong because most new projects were suburban and were priced at levels that end users were likely to find affordable.
"Many home-seekers worry property prices will go up further and are buying now despite the new measures," Pak said.
In its latest attempt to contain prices, the Beijing city government said last Wednesday it planned to supply 20,000 "self-use" flats - meant for the owner to live in and not hold as an investment - this year and another 50,000 next year. The homes will be 30 per cent cheaper than flats in surrounding areas.