China’s property market continues to fall as now even Beijing’s real estate developers are dropping their prices. From Telegraph:
The Chinese capital saw a building boom of historic proportions in the seven-years before the Olympic Games – and an explosion in the sums people would pay for a foot on the housing ladder.
As elsewhere across the world, it has become clear that the boom is ending. Since the end of the Olympics and Paralympics last month, the slow-down has turned to bust. Many of the city’s hugely ambitious developers have found themselves burdened with a glut of new apartments.
At exhibitions and sales rooms, companies are offering instant discounts of 15 and 20 per cent – and still the number of buyers is falling short.
The government, in response, is now planning to save the market. From Property Wire:
The Chinese government is expected to relax its policies on real estate before the end of the year amid concerns over falling prices and slowing economic growth.
Analysts are predicting that restrictions for private investors on owning second properties, a reduction of property taxes and an extension on mortgages for individuals are likely.
‘Policy changes will probably stem from initiatives to spur consumer demands, rather than ease credit policies to real estate developers,’ said Qin Xiaomei, head of research of property consultant CB Richard Ellis’ Beijing branch.
For more about the recent crisis of China’s property market, see CDT’s tag.
