China Government Cannot Slow Pace of Real Estate Investing
Real estate investing in China continues to grow rapidly in both the commercial and residential sectors, this despite a concerted effort by the Chinese government to slow the market due to concerns over inflation.
It may be that the figures are nearing a peak as the government's tightening measures were only launched within the last several months and may begin to have a lagged effect soon. These measures include higher down-payment requirements and home purchase limits. The National Bureau of Statistics reported that for the January to February period alone, real estate development in the country rose by over 35%, and investment in the construction of residential property was up 35% as well. Commercial and residential sales together totaled CNY524 billion, which is a 27% gain from the previous year.