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Latest government statistics have revealed that China's real estate sector has accumulated over 167 million square meters of unused land resources across the country, an alarming sign of house oversupply, warned a report in Tuesday's Economic Information Daily.

 

The unused land, accounting for 53.8 percent of the total purchased by house developers in the first 11 months of 2005, would be more than enough for the following year's demand for housing development, according to figures from the National Bureau of Statistics (NBS).

 

The NBS statistics also showed the country is confronted with an increasing number of vacant houses. The floor space of the vacant houses in China stood at 114 million square meters by the end of last November, a year-on-year rise of 14.2 percent.

 

During the January-November period of 2005, the floor space of the houses under construction increased year-on-year by 18.5 percent to 149 million square meters.

 

"The potential house oversupply is due to a lack of stringent market admittance and withdrawal mechanisms," said Qian Minze, an expert with the State Information Center.

 

"Driven by the high real estate prices and profits, a large number of companies swarm to the market, including those inferior ones.

 

"On the other hand, it is difficult to compel the unqualified companies, which have already existed in the market, to withdraw."

 

Qian urged the government to take legal and economic measures to tighten control over the real estate market, so as to ensure the healthy development of the industry.

 

(Xinhua News Agency February 8, 2006)