The sales price of second-hand houses ranked first in the country, and the sales price of newly-built houses ranked third in the country. In Shenzhen and other first-tier cities "led the fall" in housing prices in September, as a third-tier city of Yichang why there will be such a high rate of increase? According to the Yichang Municipal Housing Bureau, from January to September 2008, the average price of new housing in the Xiling District of the central city was RMB 4,400 per square meter; the ratio of per capita income to housing prices in Yichang was 1:8.8 or so, for a prefecture-level city with a population of only 4 million people, so why are housing prices so high? In the first-tier cities "lead down" at the same time, with the public concerned about these issues, the reporter visited the relevant departments yesterday. 1-September urban average price of new housing (residential) rose 10.26% Yichang housing prices even ranked first in the country, yesterday, the City Housing Bureau Housing Administration Section Song said this is very surprised. According to the data he provided, January-September 2008, Yichang City, the average price of new housing (comprehensive) sales of urban areas of 3,166.4 yuan / square meter, the level of the same period in 2007 for 2,762.9 yuan / square meter, an increase of 14.61%; 2008 1-9 months of urban areas, the average price of new housing (residential) sales price of 2,840.2 yuan / square meter, an increase of 10.26%. The average price of new housing (residential) sales prices in urban areas in January-September 2008 was 2,840.2 yuan / square meter, the level of the same period in 2007 was 2,575.9 yuan / square meter, up 10.26% year-on-year. According to the statistics of the Municipal Housing Bureau, in September 2008, the average price of newly built housing in Xiling District of Yichang City was RMB 4,400 per square meter, the average price of newly built housing in Wujiagang District was RMB 3,900 per square meter, the average price of newly built housing in Yiling District was RMB 2,300 per square meter, and the average price of newly built housing in Yichang Development Zone was RMB 3,200 per square meter. Land, financing, demolition and relocation costs remain high Why are Yichang housing prices so strong? What makes Yichang housing prices so high? Three Gorges University School of Economics and Management teacher Wang Qionghai analysis, the main reason for high prices in Yichang is the special location of Yichang, not much land available, developers land costs are too high. "The house price in Yichang is indeed a bit high, the ratio of per capita income to house price is about 1:8.8, while in developed countries it is only 1:6." Song, the head of the Housing Administration Department of the Municipal Housing Bureau, analyzed the reasons for the high house price in Yichang, and in addition to agreeing with Wang Qionghai's analysis of the high cost of land, he also believes that the long demolition and relocation cycle of real estate developers in Yichang has led to high demolition and relocation costs and high construction costs. In addition to agreeing with Wang Qionghai's analysis of the high cost of land, he also believes that the long demolition and relocation cycle of real estate developers in Yichang has led to high demolition and relocation costs, as well as the high cost of construction labor, which is one of the reasons why Yichang housing prices are too high. "This year, land prices in Yichang have risen by more than 10 percent compared to last year, coupled with bank interest rate hikes and increased financing difficulties for developers, all of which have contributed to the high housing prices in Yichang." Fan Wensheng, head of the price section of the Municipal Bureau of Statistics, analyzed. According to the city's real estate authorities, Yichang housing prices remain firm, should be related to four major factors: First, the Yichang real estate bubble, water is not much, there is not too much room for decline, the rise in housing prices by the rising prices of building materials and labor costs; Second, with the accelerated urbanization of Yichang, as well as residents to improve the purchase of housing demand, so the overall outlook of the housing market in Yichang to the better, rigid demand Rigid demand still existed; thirdly, Yichang still had some strong purchasing power, including some high-income groups, residents' improving purchasing power, and the demand of people from neighboring counties and cities who came to the cities in the process of urbanization; fourthly, the favorable living and entrepreneurial environment in Yichang also attracted a large number of investors to purchase properties in Yichang. The second-hand houses have been affected by the strong price of new commercial houses, and have also maintained a large increase. During the interview, many developers said that the real estate industry is actually not a profiteering industry as imagined by the general public, and that the industry costs and market risks are a complex and long-standing issue. Transactions slowed down but not much room for price reductions According to the Municipal Housing Bureau statistics show that from January to September 2008, the city's vacant housing construction area of 144,100 square meters, while last year only 132,700 square meters. "The number of housing transactions has dropped significantly this year, and some properties can't even sell a single unit in a month." That's how Fan Wensheng describes the sluggishness of the housing market in Yichang this year. His words were confirmed by Song, the head of the Housing Administration Department of the city's Housing Bureau: "This year, the area of real estate construction and sales in Yichang is declining, but prices are rising." For example, from January to September 2008, 6,555 second-hand houses were sold in Yichang City, with an area of 895,400 square meters, a year-on-year decline of 12.7%. Real estate is not selling, the number of vacant housing increases, Yichang housing prices will have a big drop in space? Three Gorges University School of Economics and Management teacher Wang Qionghai in the analysis of a variety of factors that Yichang housing prices decline space is not large. City Bureau of Statistics price Fan Wensheng also said: "Now the people of Yichang City is in the wait-and-see, in fact, the demand for housing in Yichang is still relatively large, alone on the demand for Yichang home prices fell significantly space is not large." The city's real estate authorities analyzed the impact of changes in the national economic situation and real estate market on Yichang's real estate is inevitable. He said, the city's real estate transactions from the second quarter since the decline is very obvious, in the national situation changes and expectations, many people expect Yichang's housing prices will be like the same as the decline in foreign countries, so is to wait and see; and the developers are also in the situation of the situation to remain on the sidelines, both sides are on the sidelines. He believes that Yichang as a third-tier city, the changes in housing prices have to be further observed, and will not react as quickly as first-tier cities. According to the relevant departments, the current municipal government has begun to organize the relevant departments of the real estate market related topics for the thematic study, in order to come up with an objective, scientific situation report for the government to provide a basis for decision-making.