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Beijing property prices flat

By Hu Yuanyuan (chinadaily.com.cn)
Updated: 2009-01-22 15:39

The growth rate of Beijing's property price slowed to 1 percent in December 2008, the ninth monthly drop in a row, Beijing Statistics Bureau said on Jan 21.

Due to customers' strong wait-and-see sentiment, the sold floor space of commercial residential buildings fell 40 percent on a yearly basis. And the property price growth rate for all of 2008 was down 1.9 percent over 2007.

However, after property developers began to cut prices to stimulate sales in the fourth quarter, the market showed signs of warming up in December.

"Once the transaction volumes bounces, the price may also pick up soon. But it is still hard to judge if the rebound in December is sustainable," said Yu Xiuqin, spokesperson of Beijing Statistics Bureau.

Given the November and December statistics, Beijing's property price is not likely to plummet in the first quarter this year. If there is any drop, it should be less than one percent, Yu added.