China Housing Market (Boom or Bust)

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Property prices fall in Chinese cities
English.news.cn 2011-04-08 14:06:21 FeedbackRSS

http://news.xinhuanet.com/english2010/video/2011-04/08/c_13819197.htm

BEIJING,April 8 (Xinhuanet) -- As more Chinese cities are taking a hard-line attitude to harness rising home prices by rolling out property control targets, the former purchasing frenzy is no longer occurring at real estate centers. Demands have been dampened, and housing prices, especially for resale homes are beginning to fall.

For the real estate market, the "sweet spring" has not come as expected.

March and April have long been regarded as the golden time for house selling, but this year, it's not the case.

In Shanghai, it's common to see house sale advertisements in front of real estate agencies.

Low demand has prompted some resale house owners to lower their price.

Mrs. Zhu, Second-hand homeowner said "Currently, many real estate centers offer lots of discounts to customers. I'm afraid my house can't be sold at such a high price, so I have decided to lower it 50-thousand yuan."

So far, in Shanghai resale house prices have fallen by 3 to 5 percent.

The same can also be found in Shenzhen, south China.

At this center specializing in new real estate, few people are visiting.

Despite land developers' discount offers, most customers are opting not to buy.

Local resident said "I think housing prices are still too high. I'm taking a wait-and-see attitude and will buy one if the price comes down."

According to statistics from the Shenzhen Land and Resources Bureau, average housing prices for the first quarter have fallen from more than 20-thousand yuan per square meter in January, to nearly 19-thousand in March.

In Nanjing, in eastern China's Jiangsu Province, land developers are feeling a little better.

Although only two real estate centers began to sell apartments during the Qingming Festival, over 60 percent have been sold.

But for most land developers, the future still looks tough.

Li Ning, Market Manager of Mantanghong Real Estate Agency said "The high housing prices have prompted more residents to choose not to buy, although some offer a 10 percent discount."

No matter what direction the real estate market heads towards, one thing is certain. Most home buyers want to see the drop of the housing prices.