Categorized | International

Housing Prices Fell in China During the Month of March

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Residential real estate prices in China declined once again during the month of March. The country is still coping with the restrictive policies set in place by the government regarding the purchase of homes. The government’s efforts continue to be successful in reducing the average price of homes throughout the country. The regulations were put in place to prevent the formation of a massive housing bubble like the one that has had a detrimental effect on the United States economy.

 

According to the most recent reports, some regions fear that the Chinese national government will impose more strenuous restrictions in the coming months. Residential real estate prices have increased in some areas, as have sales. It is for that reason that some developers believe that more regulations will be announced in the near future.

 

Many developers had offered extensive discounts to customers in hopes of persuading them to buy a new home. However, the strategy has had little impact, as the total number of homes sold is still down from the previous month.

 

Prices fell in almost forty of the seventy reporting Chinese cities. The declines will most likely continue in those regions. Economists believe that the overall market will drop by roughly ten percent by the end of the year.

 

Housing market experts are watching the total sales figures very closely. If transaction numbers in the Chinese residential real estate market continue to perform well, it is essentially inevitable that tougher restrictions will be put into place. There has been no official announcement as of yet regarding the possibility of new restrictions, though many believe that one may come in the next few weeks.

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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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