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By Tu Lei (chinadaily.com.cn)
Updated: 2007-07-27 10:50

Liu Kai, a house buyer in Chengdu City, Southwest China's Sichuan Province, is regretting his slow decision on buying house, because a one year wait cost him 120,000 yuan (US$15,852.05).  

Special coverage: Housing in China Related readings: Beijing housing prices up 10.1% in 1st half  Tax only raises cost of housing Beijing drafts new rules on low-rent and low-cost housing Housing, a too heavy burden

In 2006, he planned to buy an apartment at a price of 3,700 yuan per square meter, but he waited to see if the price would drop. Instead, the price rose to 5,200 yuan per square meter by the end of 2006. 

"I don't think the housing price will drop, never, ever!" said Liu. 

In Chengdu City, the average selling price of commodity houses in 2006 was 4,472 yuan per square meter, up 9.5 percent year on year. Between January and May of 2007, the price was 4,650 yuan, up 6.5 percent year on year. 

Chen Wuyuan, a researcher from Sichuan branch of the Chinese Academy of Social Sciences, said the increase of consumer price index (CPI), a gauge of inflation, is partly attributed to the housing prices.  

"The government should build more low-rental houses for its low-income residents," said Chen.

Figures from National Bureau of Statistics (NBS) shows that CPI rose 4.4 percent in June compared with a year ago, as a result of rapidly rising food prices.

Food accounts for 37 percent in CPI, followed by transport and communications, at 14 percent, and entertainment and education at 12 percent.

As for salaries, the NBS said workers' annual wages rose on average from 12,422 yuan in 2002 to 21,001 yuan in 2006, an annual increase rate of 12 percent.

Figures show the country is experiencing its fastest-ever growth since it began opening up 30 years ago.

Sichuan Statistics Bureau showed urban residents’ disposable income per capita was 9,350 yuan one year, up 11.5 percent from last year, with a growth rate of 2.7 percent from last year.

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