Categorized | International

Chinese Developer Takes Action Against China’s Property Restrictions

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With the government restrictions placed on property sales in China, there is a fear that many developers will not be able to remain in business due to the loss of cash flow. However, one Chinese developer has opted to take action to stay afloat and weather the storm. Agile Property Holdings has made the decision to stop buying land for the time being.

The company announced that it will not purchase land until at least February. They may further extend their decision to delay buying land depending on whether or not the government opts to change their policies.

China’s government imposed various property sale restrictions earlier this year in order to prevent a massive real estate bubble. The restrictions include an increase in down payment requirements, and purchase limitations. Since the implementation of the property sale restrictions, the real estate market in China has experienced some serious declines. Property prices have hit yearly lows in the most recent months, and are expected to continue dropping for months to come.

As a result, property developers, and raw material manufacturers have suffered serious setbacks. Agile is the first developer to make the decision to opt out of buying land for the time being, though they likely will not be the last. The company will likely look to purchase land outside of China for the time being so as to provide profits for their shareholders.

It has yet to be determined when China will ease its restrictions on the property market. In the mean time, companies like Agile have no choice but to take drastic measures to ensure profitability.

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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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