Real estate investment surges as China announces new special economic zone
China is set to develop its third special economic zone.
The central government says the area near Beijing will cover up to two-thousand square kilometers.
Kim Hyo-sun reports. The Chinese government made the announcement over the weekend that it will develop the Xiongan New Area in Hebei as a new economic zone.
It will become the nation's third special economic zone after Shenzhen and Shanghai,... and take on some of the role Beijing plays today.
The designated zone currently covers about 100 square kilometers but will be expanded to two-thousand,... making it even larger than Shenzhen, one of China's richest cities.
Local residents are overjoyed at the news.
"We are very excited. I hope the environment and the economy here will be better in the future."
Real estate agencies in the region are being flooded with inquiries from potential buyers,... and increased demand has more than doubled real estate prices in the area.
"One square meter was worth three-thousand Yuan a month ago,... but it rose to six-thousand. We can't buy anything even with ten-thousand Yuan."
Responding to such sharp increases,... the local government has temporarily suspended property transactions.
Although no detailed plans have been announced yet,... the Chinese government is already facing the daunting task of dealing with surging speculative real estate investment.