BEIJING (Reuters) - Property sales in Beijing rose 64.8 percent in 2015, boosted by more favorable housing policies, according to a real estate white paper released by the city’s government.
Increased government stimulus sparked a sharp reversal in the market after sales volumes fell 30 percent in 2014, the white paper said.
The benchmark interest rate for housing loans also dropped to its lower level in almost a decade, after several interest rate cuts, the paper noted.
“The country’s housing credit and tax policies have been at their most favorable levels in recent years,” the paper said.
The number of newly-built commercial homes and existing stock sold in Beijing increased 26 percent and 90.7 percent respectively year-on-year in 2015, according to the paper published by Beijing Municipal Commission of Housing and Urban-Rural Development.
China reported slightly stronger-than-expected economic growth in the second quarter as the housing boom and a government infrastructure building spree boosted demand for materials from cement to steel.
But recent data has also indicated that property investment growth is cooling.
Some of the country’s biggest cities have had to impose curbs on property purchases as sharp price rises raise fears of possible asset bubbles.
Reporting by Yawen Chen and Sue-Lin Wong; Editing by Kim Coghill