From Reuters:
A credit crunch, dwindling transactions and falling prices in some hot markets add up to trouble for China’s real estate industry, a key pillar of growth for the world’s fourth-largest economy.
Although official figures show investment in property still grew 32 percent in the first four months from a year earlier, developers are battening down the hatches as bank loans dry up and the cost of tapping other sources of funds rises.
Dropping home sales are a particular threat to developers, who typically rely heavily on cash from the pre-sale of unfinished projects to fund operations and further expansion.
