Beijing takes measures to curb house prices

Beijing is certainly a city on the rise. Figures in 2009 show per capita GDP in the city hitting above 10,000 US dollars for the very first time. And that makes Beijing only the second city after the financial hub of Shanghai to make that grade. But also spiraling upwards is the price of real estate. Yang Fei explains what central and municipal authorities are doing to tackle an ongoing problem.

According to the latest figures from Beijing's statistics bureau, the city's GDP in 2009 grew 10.1 percent, surpassing the national level of 8.7 percent.

Meanwhile, Beijing's housing prices began a sharp rebound after August of 2009. Sources say average prices of new properties in the city hit close to 20,000 yuan, about 3,000 US dollars, per square meter in December. The municipal statistics bureau says the surge is due to easy financing policies and confidence in the economy.

Yu Xiuqin, spokesperson of Beijing Municipal Statistics Bureau,said, "Both the central government and municipal government have taken note of soaring house prices, and have launched a series of policies to stabilize the market. Land reserves worth a 100 billion yuan have been set aside, as one measure to put a curb on prices."

Yu says more social welfare housing will also be made available in Beijing this year, in another move to stabilize the property market.