The analysis of real estate development in Shantou City

 

Vice president of Bureau of Housing Management in Shantou   Hong Hong

 

 

According to the analysis of specialists, one development stage of real estate industry should be confined within 4 years to 6 years. The next wave crest should be in 2008. During the new fluctuating circle, how the Shantou’s real estate industry steps out the up-and-down circle and enters into the flourishing wave crest is a question which worth the thinking of the government.

 

 The real estate industry is the polar industry of domestic economy. Now it is in both the recovering stage and the rapidly developing stage. According to the material, the increase rates of domestic product were 9.1% and 9.5% respectively in 2003 and 2004. The increase rates of investment were 29.7% and 28.1%. The increase rates of commodity house sale were 34.1% and 30%. The prospect increase rates of domestic product in 2005 would be 9%.

 

The development of real estate cannot be driven away from normal track of domestic economy. Since 2003, the increase of investment in real estate has been exceeded the national average level by 20% which was a dangerous signal. As a result, the government cannot just leave it alone. Several measurements have been adopted to cure the disease of market.

The real estate industry of Shantou city has experienced the extensive stage and intensive stage which emphasized the residential culture and comfortable environment. The newly developed communities achieved great success and gave a good impression to the citizens. Because of the development macro economy, support of the government, transformation of the market and the special concept and hard work of real estate operators in Shantou, the market is showing its good prospect. From January to August, the average price of houses in the inner city reached 2232.8 yuan per square meters. With the increase of construction cost, infrastructure cost and land price, the price of houses will increase at the same time.

 

Now the consumers are showing great desire for the market due to the low price of houses. With the increase of several competitive factors, Shantou’s real estate market is facing a new battle.