Investment in Beijing's real estate sector only grew 3.5 percent to 152.5 billion yuan (US$18.8 billion) in 2005, a marked decrease in the growth-rate of 22.5 percent from the previous year.

 

The slump reflects the implementation of the government's macro-control policy in the sector, but as the mainstay of Beijing's economy, the remarkable decrease is cause for concern for the central bank's management department, according to a central bank's report released on Wednesday.

 

"Beijing's housing supply has shrunk in 2005," the report stated.

 

By the end of 2005, the loans provided by commercial banks to the property market in Beijing had topped 441.28 billion yuan (US$54.48 billion), while 50.89 billion yuan had been loaned, 14.78 billion yuan less compared with 2004.

 

The report also showed that the housing demand of Beijing residents was brisk but quite a number of marketable houses remained unsold in 2005.

 

(Xinhua News Agency February 24, 2006)