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Buying property can be one of the biggest financial commitments a person can make. It can be hard as a low-income earner or a first home buyer to even get a foot in the door to the Chinese property market due to high prices.
In fact, over the month of September the National Bureau of Statistics of China reported staggering growth in house prices for both new and established dwellings.
Year-on-year increases were recorded at up to 20.6 per cent for new properties in medium to large sized cities across the country.
Established dwellings also saw strong growth over the year ending in September, with the National Bureau recording rates as high as 17.8 per cent.
September isn't the only month that has seen notable price growth, however. It's yet another month in a row where the real estate market in China has maintained a strong performance.
However, this significant price growth has placed many affordability barriers in the way of new or lower income buyers obtaining a home.
In order to stimulate more activity in the housing market and to encourage increased homeownership, the Chinese government announced that it will deliver affordable homes for residents in Beijing.
The Beijing Municipal Commission of Housing aims to introduce approximately 70,000 homes across Beijing, targeted at middle-income earners.
In an October 23 statement, the Beijing Municipal Commission of Housing said they made the decision to distribute more affordable housing options onto the market to balance the demand for properties.
At the same time, the Commission also aims to support the demand for owner-occupied apartments and stabilise overall prices in the market.
The introduction of more affordable housing options in the Beijing real estate market could help to bring down median prices across the rest of the city. This is a much-needed step to be performed in order to meet the demands of middle-income families who are seeking to buy property.
According to an October 16 statement from a People's Republic Bank of China spokesman, loans for real estate have continued to grow higher. Over the month of September, loans from major financial institutions increased by 19 per cent to reach 14.17 trillion yuan.
This growth could possibly be due to rapidly rising house prices, leading buyers to spend more for their property purchases.
For more information about real estate in China, contact Ray White Group at www.raywhite.com.
