Categorized | International

Home Prices in China See First Decline in a Year

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For the first time this year, housing prices in China experienced a decline. The average nationwide price fell 0.03 percent in the past month to just under nine thousand yuan per square meter. Prices are still up from where they were last year, however.

More than half of the cities in China still experienced increases in home prices. However, the declines in roughly forty-five percent of the nation’s cities were large enough to bring the overall average price on houses down.

The Chinese government has been working to slow down, and even negate price increases on real estate throughout the country. Their policies have worked very well in the wealthier, larger cities. Government officials are now looking to enforce the policies in the less wealthy, secondary cities of China. The secondary cities have experienced somewhat of a boom, as investors look to take advantage of the growing Chinese market.

When analyzing the declines and increases that took place in China’s housing market over the past month, Shanghai experienced the largest decline, whereas Beijing actually experienced a moderate increase in pricing. Beijing’s increases in September, however, will likely be reversed in October, as the most recent data shows a significant drop off in pricing during the first few days of the month.

China’s government has made significant strides over the past few months in reducing the growth of the housing market. The nation has taken such actions to avoid a growing housing bubble. While real estate developers continue to struggle as the government expands its efforts to curb housing growth, the current policies will likely remain in place until the end of next year.

 

 

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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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