Source: CCTV.com

02-05-2008 13:47

The growth rate of commercial housing prices in Shanghai lagged behind most large and medium-sized cities across the country in 2007. Local authorities say the long-standing gap between supply and demand has also been improved.

The growth rate of commercial housing prices in Shanghai lagged  behind most large and medium-sized cities across the country  in 2007.

Prices for Shanghai's commercial housing increased 3.4 percent in 2007 year-on-year. Local authorities say the rise was mainly due to the government reducing the amount of commercial housing available and its policies regarding affordable housing.

Authorities say investment in Shanghai's property market increased steadily last year, along with the booming market demand. Housing prices climbed in the middle of the year, but they adjusted and slowed in the fourth quarter.

Local authorities say the housing supply and demand problem has improved. Last week, the volume of commercial housing transactions in the city declined 8.7 percent from a week earlier. Sale prices also decreased for a second straight week.

Insiders say the market adjustments are a result of macro-control policies. In some districts, the price of second-hand housing is even higher than newly-built homes.

Editor:Xiong Qu