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Property risk re-igniting as China economy turns corner

Published on Jan 17, 2013 12:55 PM
A construction site of a residential compound is reflected on the glass facades of a office building in Taiyuan, Shanxi province. Chinese leaders may breathe easier as the economy is turning around the corner, but they may grapple with a renewed property frenzy due to expectations of further policy easing and quickening urbanisation. -- PHOTO:REUTERS

BEIJING (REUTERS) - Business is booming in Beijing's real estate offices - good news for property agents like Ms Zhang Huanhuan, but a headache for China's policymakers as worries resurface about the sustainability of investment in the sector.

"We've got off to a flying start in 2013 - transactions are picking up, so are prices," said Ms Zhang, a saleswoman at an outlet of Maitian Real Estate Agency Co. in the capital.

Recent sales included six high-end apartments at a condominium in Beijing's Dongzhimen area, a neighbourhood favoured by the city's expatriates, she said.

Government data on Friday is likely to show China's annual economic growth rebounded to 7.8 per cent in the fourth-quarter of 2012 from 7.4 per cent in the third, snapping seven straight quarters of weaker expansion.

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