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A thumping 22.87 million square meters of commercial housing were sold in Beijing in 2006, a 3.2 percent increase on 2005, the Beijing Daily reported on Monday.

A report released by real estate information website www.e-fdc.com showed that the sales value of commercial housing -- residential and office buildings and shops -- was 200.1 billion yuan (about US$25 billion) in 2006, with an average price of 8792 yuan per square meter, an increase of 16.7 percent on 2005.

Experts said that real estate sales in Beijing may continue at a level of some 20 million square meters for several years. Estimates suggest that 21 million square meters of residential buildings, both upmarket and economically affordable houses, will go on sale in Beijing this year.

In Dec. 2006, the People's Bank of China (PBC), the central bank, called for caution regarding the possible financial risks in the real estate sector.

Despite the warning, the central bank report said market demand for houses is still strong.

(Xinhua News Agency January 9, 2007)