Chinese House Prices Falling Across The Country
News Posted On: 07 November 2011
Chinese house prices are falling. Some would add "at last" to that sentence, but not the dozens of homeowners who have just paid 20% more than a developer is now charging for their spanking new home in Shanghai. Whether you bought the developers' spiel that China wasn't in a bubble because debt levels were low and the banks in good shape, or not, it is clear that the government either didn't or at least wasn't willing to bet its economy on it.
So the government kept chipping away with suppressing measures, including a ban on second home purchases, increased minimum mortgage deposits, and -- the final nail in the coffin -- trial property taxes in some cities including Shanghai, until they finally cooled the market.
The latest data shows sales and prices falling across China, in every city except Shanghai according to the China Daily.
Average home prices in the country's 100 major cities fell for the second consecutive month in October to reach 8,856 yuan per square meter, down by 0.23 percent last month from September, said the China Index Academy in its latest report.
Chang Zhi, chief analyst of Century 21 China Real Estate, said he expects more real estate companies in the second- and third- tier cities to follow large firms' steps to cut house prices under the current policy.
"A new round of home-price declines may come in one or two months," Chang said.
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Article written by Liam Bailey
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