Categorized | International

China’s Residential Property Prices See No Growth

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It appears as if the Chinese government’s plan to limit the out of control pricing increases in the housing market is starting to work. The latest monthly report on home prices indicates that prices remained stagnant across the country from July to August.

China’s property market has been widely watched this year by analysts and real estate experts across the globe. The Chinese government feared the out of control increases in home prices would quickly cause the bursting of a housing bubble within the nation, and thus, administered a new policy to prevent it from happening. Many real estate experts believed that the government was making a mistake, and that the new laws would not be able to effectively limit any kind of price increases.

However, the latest home pricing report may prove otherwise, as indicated by China’s Real Estate Index System. The National Bureau of Statistics is slated to release their numbers in the next few days. If the numbers across both agencies are consistent, it may just prove that China’s new policy has been effective in preventing property speculation so as to make residential properties more affordable.

China’s efforts to prevent a housing bubble are not stopping, however, as they are also working out deals with local governments within the country to impose limits as to how many homes can be bought and sold each month.

There is still some uncertainty as to the long terms effects of the policies instituted by the Chinese government. However, It does seem as if they are achieving their intended purpose for now.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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