Chinese Real Estate Surplus Won’t Affect Major Cities Presented by Group 1: 陈瑶 贺怡阳 李玉琴 殷诗雯

China's housing market is recovering, but unevenly. First- tier cities, including Beijing, Shanghai and Shenzhen, have seen a real estate boom in the first two months of the year, with housing inventory dropping after the government issued a series of policies aimed at clearing the property glut across the country. New home prices in January increased about 52.7 percent year-on-year in Shenzhen, followed by Shanghai (21.4 percent) and Beijing (11.3 percent), according to a recent report of the National Bureau of Statistics. In many third- and fourth-tier cities, however, a notable overhang of unsold houses continues to limit the expected increase in housing prices.

China has less than 720 million square meters of unsold commercial residential buildings that have finished construction. The total undeveloped real estate land, on the other hand, is more than 366 million sq m, which roughly equals 1 billion sq m of commercial housing. The designed buildings, if all of them finish construction, could be sold in 10 months or so.

The more than 300 third-tier cities and 2,000 fourth- tier cities or counties, characterized by less advanced industrial development, limited inflow of non-local people and relatively weak demand for commercial housing, need not worry too much about their housing inventory. The real dangers are in major cities, where land is becoming increasingly scarce, property prices are escalating, demand for low-cost housing is high and real estate financing remains unregulated.

Of the four first-tier cities, Guangzhou has seen the mildest change in housing prices, while Shenzhen, although known for a drastic increase in prices of new homes, actually lags behind many smaller cities in terms of the amounts involved in transactions.

1.glut n. 存货过多，供过于求 e.g. The glut of coffee led to a sharp drop in prices. 咖啡供过于求道致价格急剧下跌。 2. inflow n. If there is an inflow of money or people into a place, a large amount of money or people move into a place. 流入 ; 涌入 ; 现金流入 ( 经济学 ) e.g.. The Swiss wanted to discourage an inflow of foreign money. 瑞士人想要阻止外资流入。

3.transaction n. A transaction is a piece of business, for example, an act of buying or selling something. 交易 [ 商业 ] [ 正式 ] e.g. The transaction is completed by payment of the fee. 交易在支付费用之后就完成了。 4. Inventory n. 详细目录，存货清单 e.g. We will need to call on our supplier to get more inventory. 我们必须请供应商送来更多存货。

商品住宅：是指房地产开发企业 ( 单位 ) 建设并出 售、出租给使用者，仅供居住用的房屋。 2. commercial residential buildings 1. the National Bureau of Statistics 1952 年，为了适应社会主义经济建设的需要，中央 人民政府第十七次全体会议决定成立国家统计局。国家 统计局是国务院直属机构，主管全国统计和国民经济核 算工作，拟定统计工作法规、统计改革和统计现代化建 设规划以及国家统计调查计划，组织领导和监督检查各 地区、各部门的统计和国民经济核算工作，监督检查统 计法律法规的实施。 国家统计局