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The bustling metropolis of Shanghai has reported an increase in the number of private individuals purchasing apartments on credit as prices of residential houses continue rise.
The city's commercial banks have registered 26.197 billion yuan (US$3.16 billion) in loans for such purchases in the past seven months.
This figure is much higher than that of real estate companies, according to sources with the Shanghai Branch of People's Bank of China, the nation's central bank.
Insiders here say the real estate market is booming because of Shanghai's steady economic growth.
Statistics show one quarter of the increasing demand comes from migrants, including those from overseas.
However, financial analysts have warned the active buying and selling in Shanghai's real estate market may be a bubble. They are worried supply might exceed demand in the future without strong support from local consumers.
They said consumers should look ahead when investing in their homes.
(Xinhua News Agency September 2, 2002)
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