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China / Society

Housing speculation surges in Baoding

(ECNS) Updated: 2014-03-31 17:06

Property prices and speculative buying have surged in Baoding, Hebei province, since the announcement on March 26 that the city would take over some of Beijing's administrative responsibilities, the Modern Express reported.

Chen Hong, who migrated from southern China and has bought a house in Beijing, is among the buyers looking to profit from the handover in Baoding.

The couple snagged a house on Saturday, but only after its price spiked by 200 yuan per square meter overnight. "We had to spend an extra 20,000 yuan on the 90-square-meter house," Chen said.

Another investor surnamed Li, a housewife from Shijiazhuang, capital of Hebei, said she knew nothing about Baoding but had still come seeking speculation opportunities.

Li has earned about 200,000 yuan by reselling a house in Shijiazhuang. "I know nothing about real estate. All my investment decisions are made by instinct," she said.

Housing prices rose about 10 percent last week in Baoding. According to official statistics, 3,474 presale contracts on houses were signed in the period from March 1 to March 24, equivalent to one-quarter of the total contracts last year.

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