Expert not worried about rising cost of housing  

中国楼市反季升温 专家称不必过分忧虑

在传统楼市旺季“金九银十”相继落空后，11月中国楼市的“反季升温”引发舆论的普遍关注。

Beijing (CNS) -- There is no need for serious concern over rising housing prices in China's major cities as long as income growth is higher, an expert said during an interview Monday.

Gu Yunchang, vice chairman of the China Real Estate and Housing Research Association, told reporters from Chinanews.com that bullish market sentiment and an adequate supply of home loans had caused the rising prices.

Gu said the central bank injected a record amount of cash into banks through reverse repurchase operations last month, which satisfied home loan demands. Adjustments by many cities to home fund programs also brought convenience to buyers, he added.

China's real estate market is caught in a dilemma, where both steady economic growth and price controls are taken into account, Gu said, adding that the slightly upward tendency might continue till the beginning of next year.

However, Gu also warned that higher income growth relative to housing prices is a prerequisite for China's real estate market to become rational.

Home prices in the majority of China's 100 major cities rose for the sixth consecutive month in November, according to statistics from the China Index Academy, one of the largest Chinese property research institutions.