Hopes for stable price

"After we pay the mortgage in the future, my fiancee and I have to scrimp and save to return the money back to my relatives and fulfill the bank's mortgage plan. I would have around 2,000 yuan left from my monthly salary to pay other bills," Shou said, adding that he was afraid if he did not decide to buy a home quickly, others would vie for them and push the price to even higher levels.

Liu Xiaoguang, former vice president of Beijing Real Estate Association, said that a sharp rise in home prices was not conducive to the healthy development of the property industry.

"The industry regulator needs to take measures to keep the home-price hike in line with the pace of citizens' income rise. The property sector is still in the process of stabilization, so developers should not be over-optimistic about the market," added Liu, the General Manager of Beijing Capital Group, a state-owned property, city infrastructure conglomerate.

Gao Haiyan, an expert with Shenzhen Academy of Social Sciences, told Xinhua that when a full-fledged economy recovery had not been established, the surge in home prices would add pressure to homebuyers, while an accelerated lending expansion might lead to future bad loans.

(Xinhua News Agency July 24, 2009)