A night view of Shanghai, east China, Nov. 1, 2018. (Xinhua/Cai Yang)
BEIJING, Dec. 14 (Xinhua) -- City cluster will become an important area to attract real estate investment in China in the future, while real estate investment growth in other areas will slow, reported Economic Information Daily Monday quoting an insider.
The remark was made by Liu Lin, chief expert with REICO, a research institution jointly created by the China Real Estate Chamber of Commerce (CRECC) and the China Urban Reality Association Fund, at the CRECC annual meeting held Sunday in Beijing.
Liu noted that over the past three years, the average annual sales area of China's commercial housing was about 1.7 billion square meters, with growth rate basically registering zero, which means China's commercial housing sales area is approaching the peak.
As the economic growth has shown a declining trend, so has the population structure dividend, said Liu.
The population aged 25-45 are the major buyers of houses, but the quantity of the group in the "13th Five-Year Plan" period (2016-2020) actually reduced by 18 million from the "12th Five-Year Plan" period(2011-2015), and it can be seen that the growth of real estate investment has dropped from 20 percent in the "12th Five-Year Plan" period to single digit, noted Liu.
She noted that the quantity of such group during the "14th Five-Year Plan" period will further reduce by 20 million.
During the "14th Five-Year Plan" period, tight policies related to housing will be continued so as to promote the steady and healthy development of the real estate market , according to Liu.
Besides, the total demand for new urban housing will continue to decline slowly, and the investment in real estate will maintain low growth, she predicted.
She also forecast that with the rapid development and upgrading of the industrial structure, real estate demands in the Yangtze River Delta, the Pearl River Delta, the Beijing-Tianjin-Hebei region, the Chengdu-Chongqing region, and the middle reaches of Yangtze River will continue to increase.
(Editedby Gu Shanshan with Xinhua Silk Road,gushanshan.1987@163.com)
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