With more than 100 million Chinese citizens expected to move to the cities, China will need five million homes each year over the next seven years, or a total of 35 million homes, Singapore-based real estate firm CapitaLand said.

During the World Cities Summit China In-Focus Forum held in Singapore, CapitaLand's Chief Executive Officer Lim Ming Yan said the demand for 35 million homes will be triggered by China's rapid urbanization as well as the country's rising middle class.

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Lim predicted that China, on average, will need five million new homes a year over the next seven years as he stressed that there is also actual significant demand for new homes in major Chinese cities.

He said the demand for housing is also buoyed by China's changing demographics, including the sudden rise in middle class, the ever-changing consumer needs, as well as the ageing population.

And as some companies move to inland from coastal areas in order to keep costs down, workers will also be moving with them, triggering the need for new houses.

"This trend means there is huge opportunity for integrated development projects," said Lim, as he stressed that the Chinese government should, at this early, come up with solutions to foreseen issues, such as funding.

CapitaLand, one of Asia's largest real estate companies, has built around 50,000 homes in China since 1994 and has secured deals to build 65,000 more homes in the country.

Aside from housing, the developer also has shopping malls, commercial centers, mixed-used developments and serviced residences in China.

As this developed, data provider China Real Estate Index System said housing prices in the country dropped in May, the first time in nearly two years. The index also showed indications that more cities reported price declines and weaker home sales.

Average new-home prices dropped 0.3 per cent in May from April, after gaining 0.1 per cent in April. The decline was the first time since June 2012.

TagsChina housing, China New Homes, China Real Estate, Capitaland, China Urbanization, China Homes