China’s Property Developers Feel Big Squeeze – Tom Mitchell
From Financial Times:
China’s attempt to reign in run-away property development is creating a host of unintended headaches for the industry, according to executives at two of Beijing’s biggest real estate companies.
“Residential [property] has become very political,” Zhang Xin, chief executive of Soho China, said during a briefing at the Boao Forum for Asia, held in Hainan province. “It’s not a business market anymore. The government is very responsive to the media. If there’s one `nail,’ the government needs to be seen to be responsive to public demands.”
Last month the stubborn owner of a Chongqing “nail house” – so nicknamed because it was the sole surviving structure in an area razed and excavated for redevelopment – became a cause c√©l√®bre and a symbol of a popular backlash against the consequences of China’s property boom.[Full Text]