Real Estate Frenzy Triggered

05/04/2017

Image: Xinhua

​chinaurbanisationnews

A sleepy district in Hebei province has suddenly become the centre of China's latest property craze and the talk of the country.

Barry Shares: Location location location
​

Image: China Daily

​Recently, a new economic area was established by Chinese government to advance the coordinated development of the Beijing-Tianjin-Hebei region.

The region, named as Xiongan New Area, spanning three counties in northern China's Heibei province – Xiongxian, Rongcheng and Anxin - enjoys the same status as the Shenzhen Special Economic Zone and Shanghai Pudong New Area, according to Xinhua, which added that such designated areas are part of a strategy “crucial for the next millennium.”
​
​​The breaking news of April 1st immediately drew wide support from locals and authorities alike, with many predicting that the new area would help to boost Hebei’s economy, as its GDP has ranked lower than those of other provincial regions in the past two years.​ But what arrived in the new area even faster than industrial investment was feverishly eager home-buyers.

Regulators curb speculative house purchasing in Xiong'an Image: Sina.news.com.cn

Less than 24 hours after the announcement, counties located within the new area began to see home-buyers flocking into the region, toting millions in cash in order to grab properties on land expected to be on the receiving end of national and even international investments. 

Under exploding market demands, housing prices within the new area have shot up from 4,000 RMB per square meter in 2015 to a current average of 15,000 RMB per square meter, with some high-end properties boasting per-square-meter prices of over 50,000 RMB, the Global Times reported, citing local real estate agents. The home-buying rampage not only affected counties within the new area, but also spread to areas beyond it. Housing prices in Baigou – some 20 kilometers away from Xiong'an New Area – doubled to 14,000 RMB per square meter overnight. 
​
In response, authorities stepped in to stop the frenzy. By April 4, the preparatory committee of Xiong'an New Area had arrested seven people suspected of deliberately raising local housing prices, and shut down a total of 71 real estate sales offices and 35 real estate agencies. Some 125 illegal construction sites were also torn down, the committee said in a statement. It targeted all forms of illegal property trade and vowed to crack down on illegal constructions. The committee also said in a statement that it will strictly implement a central government guideline that states "houses are for living in, not for using to speculate.” 

Read the original article at Chinadaily, BBC News and People.cn

2017/03/31
Flying Taxis Arriving

2017/03/16
Citizens to Monitor Water Quality

2017/03/02
​World's Longest Single Axis Bridge in Shijiazhuang

2017/02/21
Elevated Cycleway Opens in Xiamen

...social
...housing
...environment
...transportation
...development​