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The supply of new homes in China has reached a record high. In the first seven months of this year, an additional 2.5 billion square meters of floor space was constructed.
Officials from the Ministry of Housing and Urban Rural Development, says that real estate supply is sufficient this year. They believe that the imbalance between supply and demand will be reversed in the next 12 months.
Qin Hong, Offcial of Center of Policy Research, Ministry of Housing and Urban-Rural Development said "What does that translate to in scale? 2.5 billion square meters of residential property under construction is a little bit more than the total sum of the area last year. From this January to July, the residences sold account for 16 percent of the commercial residences under construction. Throughout the years 2006, 2007 and 2009 this figure lingered around 20 percent. So we can clearly see that in the second half of this year the supply of the real estate market is sufficient."
- Expert: Real estate supply sufficient in H2 2010-08-30