Home purchase plans drop in Beijng

A quarterly survey of Beijing residents shows a declining willingness to purchase homes. The poll, conducted by the central bank, reveals that more than 40 percent of home buyers have postponed their purchase plans.

The survey shows that expectations of future housing price inflation have eased a bit, but still hold a dominant share of people's concerns. More than 40 percent of Beijing residents expect property costs to rise in the next quarter, 10 and half percentage points less than the previous period. About 14.6 percent of residents expect housing prices to fall over the next three months, 8 points higher than in the previous survey.

Due to these expectations, only 16.9 percent of the Chinese capital's residents are planning to buy property in a year, nearly 5 percentage points less than the previous quarter.

Among those planning to purchase property, more than 40 percent think a control policy dampening housing prices will take effect, so they will postpone their plans until property rates fall. Only 4.6 percent think the policy won't curb soaring costs, and will accelerate their buys.

Despite government measures to cool down the housing market, investment demand actually rose a little in the first quarter, to hit 23.1 percent, a record high in the last two years.