china property market cooling at last
News Posted On: 23 September 2011
The latest official data from China shows that property prices in the major cities remained flat for the second consecutive month in August. Property prices of new homes increased by 4.1% in August compared to August 2010, which is slightly less than the annual rise of 4.3% recorded in July. These figures show China's tightening measures to cool the property market are beginning to work.
The National Bureau of Statistics no longer publishes changes to nationwide average home prices, but data for the 70 major cities which it does survey showed prices for new homes in first-tier cities which include Beijing, Shanghai, Shenzhen and Guangzhou, failed to increase in August for the second month in a row.
China has made it increasingly difficult for domestic developers to raise funds and has increased interest rates five times since last October. The Chinese banks are also reducing their exposure to the property market and are demanding higher deposits, making it more difficult for people to buy homes. The result of these changes is that home prices fell in more cities in August compared to July, although as yet none have seen an annual decline.
The prices of new homes fell in 16 cities in August by up to 0.4% compared to 14 cities in July where the largest price decline was 0.3%. Prices of existing homes fell in 26 cities in August compared to July by up to 1.3%, compared to just 12 cities in July and 19 cities in June.
The Chinese government has spent the last two years trying to curb property speculation and the possibility of a property bubble, and it now looks as if they have been successful as increasing numbers of developers are facing pressure to cut property prices.
View property for sale in China
Written by Les Calvert
Back to news articles for this country
Latest Related News Articles in China
Local Chinese Government Begin Loosening Housing Restrictions
2012-05-17
Local Chinese governments have begun loosening restrictions on purchasing homes, and some are even p.....
China Offers More Help to First Time Buyers
2012-05-01
Although price growth in China is slowing, the government is starting to actively encourage first ti.....
Chinese Property Values Continue Downward Trend
2012-04-26
Government initiatives in China are having the desired effect, as property values are continuing to .....
IMF Predicts Soft Landing for China
2012-03-22
According to the IMF, China will avoid a hard economic landing, even though latest government figure.....
Chinese Company Builds 30 Storey Hotel in Just Two Weeks
2012-03-15
The urban population in China has grown by almost 400 million since 1990, increasing the need for ne.....
Chinese Government Property Curbs Continue to Have Desired Effect
2012-02-23
The latest data from the National Statistics Bureau shows none of the 70 Chinese cities monitored sh.....
Chinese Property Prices to Fall Sharply as Govt Maintains Chokehold
2012-02-20
With the Chinese government seemingly unwavering in its determination to maintain curbs on the once-.....
Mainland Chinese Still Snapping up Hong Kong Luxury Housing
2012-02-17
Government restrictions in China are still prompting Mainland Chinese to purchase luxury property in.....
Cooling Chinese Property Market Could Impact Economic Growth
2012-01-27
In the past few years China has enjoyed incredible growth, but it is thought the property market coo.....
China Further Tightens Grip on Property Market
2012-01-16
A statement from the Chinese Ministry of Commerce shows it is determined that foreign funded develop.....