The Chinese government is to establish a mediation system to deal with the increasing number of disputes over home area calculations, said sources with the Ministry of Construction in Beijing Thursday.

According to a report from China Consumers Association (CCA), lawsuits concerning real estate increased rapidly over the last three years, respectively rising at 23 percent, 25 percent and 13. 2 percent.

Among those cases, disputes over area calculation were the most, accounting for 16 percent in 2001.

Zhang Yuanduan, deputy director of China real estate and housing institute, said that Chinese consumers had learned through the real estate market to protect their rights and interests with the law, since traditional planned housing had replaced by the market.

China is still dealing with many illegal practices in the real estate market, such as real estate developers misleading buyers on the area calculation or failing to mark the areas in the contracts.

Construction expert Jin Liming, of the Academy of Construction of Tsinghua University, said that developers should avoid short- term gains and keep consumers fully informed about the homes they buy, especially the area calculation.

The Ministry of Construction has just announced developers in the real estate market who act illegally will be strictly punished.

Developers attempting to cheat the consumers on the aspects like the area calculation, illegal rent and improper apportionment of public areas, will be prosecuted and exposed, said the Ministry.

(xinhua 02-07-2002)