Supply of Residential Land to be Increased this Fourth Quarter
China is planning to increase the supply of residential property development land for the fourth quarter of this year in hopes to stabilize the in demand housing market. That amount of land currently available for the first nine months of this year have risen 28 percent compared to the same period last year or around 91,700 hectares.
The amount of new land that supplied the last three quarters is still higher than the average compared to last five years even when land prices have hit record highs in big cities such as Beijing, Shanghai and Shenzhen. Prices of properties in china still continue to rise in contrast the economic slowdown and the efforts of the government to curb the housing prices as many still believe that having property is still the best investment.
These gains continues to add risk in the property bubble as new home prices have increase in the fastest rate in the span of two and a half years with larger cities have doubled its pace. The housing ministry is expecting that the land available for development continues to rise this fourth quarter as certain amount of land has been converted into market supply and is hoped to stabilize the current expectations in the housing market.