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(chinadaily.com.cn)
Updated: 2007-07-25 14:25

Cai explained the rise was pushed up by people who had just been married or desired better living conditions, and also by the inflow of capital from the stock market. However, in some areas, supply still doesn't meet demand, noted Cai.

In the first half of 2007, the Chinese housing industry rose an average 6 percent in prices from the same period last year, while costs for newly built commodity houses grew by 6.2 percent. Compared to national increases, Shanghai's was relatively low as the two numbers in the city were 0.5 percent and 0.73 percent respectively.

Despite the announced statistics, consumers had different opinions regarding the price increases, saying the two numbers were far too low.

Cai responded that the reason people found those numbers questionable was that they didn't really understand the composition of houses surveyed. Most people equated housing price in the center to that of the whole city, while the survey looked at houses all over the city, including those in the suburbs.

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