Source: CCTV.com

12-04-2008 09:53

Special Report:   House Market under New Policy

Despite measures to boost the real estate sector, most buyers are still waiting for prices to drop to more affordable levels. But for some, money is no object. A group of tycoons from Shanxi province are now in Beijing to snap up some of the most expensive units on offer. Others are taking this as a sign to rush back into the market. But analysts say caution is still necessary.

A group of tycoons from Shanxi province are now in Beijing to snap up some of  the most expensive units on offer.

A Beijing-based estate agency made arrangements to bring over more than 50 investors. Arriving over the weekend, they have reportedly spent 60 million yuan so far on more than 20 properties.

Xue Jiankang, Housing Investor of Yuncheng, Shanxi said "There are 2 reasons for our picking Beijing as the place to invest. First, travel is convenient since there are three direct flights between Beijing and our hometown. Second, we think the current price level is quite reasonable whether we're buying for our own use or for investment."

Ma Tangkuan, Shanxi investor said "We feel comfortable with the prices. They are between 15,000 to 18,000 yuan per square meter. I bought an apartment for investment, and in the future my child can use it. My child expects to study at Beijing's Tsinghua University."

Shanxi investors have acquired a reputation for having ample capital and also for their successful track record in investment. Properties they buy are often those that see subsequent leaps in prices.

Xiao Yong, CEO of Funlon Housing Agency said "According to statistics, over 40 percent of Beijing's houses are bought by people from other provinces. In the high-end market, the ratio is over 50 percent. Shanxi investors bought 14 percent of these high-end units."

Xiao Yong said "We'll soon organize a group of home buyers from Wenzhou. There could also be profit in such cooperation."