Beijing housing prices drop 7.6% in 2012

BEIJING - Beijing has seen an increase in the number of residential apartments sold in the city and witnessed a drop in prices for newly built homes in 2012, the Beijing Real Estate Association said on Sunday.

The capital sold about 230,000 residential apartments, a 36.9 percent year-on-year increase, statistics released by the association said.

The average price for newly built residential apartments was 20,700 yuan ($3322) per square meter. The figure was a 7.6 percent year-on-year decrease from that in 2011.

Statistics show that in 2012 about 90 percent of all houses sold in Beijing were bought by first-time housing buyers.

Chen Zhi, secretary general with the association said it shows the effect of the government's firm stance on property market control.

Chen predicts that Beijing's market will be generally stable in 2013 as more low-cost housing and new apartments are introduced.

Beijing has imposed a raft of measures aimed at reining in house prices since April 2010.

The government has vowed to keep in place measures such as higher downpayments, bans on third-home purchases and property tax trials.

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