Source: CCTV.com

12-18-2008 14:06

China's State Council launched policies to promote growth in the real estate sector on Wednesday. The news boosted property and construction material stocks on Thursday morning. But potential homebuyers are still adopting a wait-and-see attitude.

The Chinese government had already launched a series of tax and fee cuts at the end of November to boost the real estate sector. Wednesday's package is designed to continue stimulation of the property market.

Liu Jinde, Deputy Manager of Research Center of Cinda Securities said "The property stocks and construction material stocks gained this morning and it's a direct result from the favorable policies raised by the state council's meeting yesterday. But whether these stocks can continue rising depends on consumers' confidence."

Residents also welcomed the property policies. But potential buyers still blame the high prices for postponing their decision to purchase.

One Beijing resident said "The government policies will cut our buying costs, but property developers are not doing anything."

Another Beijing resident said "I am not buying since the prices are still high."

According to the National Bureau of Statistics, from January to November this year, sales of residential properties, in terms of the floor area, dropped 18 percent from the same period of last year. The figure plunged 45 percent in Beijing, 40 percent in Shanghai and 26 percent in Guangdong province.

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Editor:Xiong Qu