Categorized | International

Real Estate Prices in China Drop in October

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Residential real estate prices fell for the second straight month in China. The decline was clearly due to the restrictive actions taken by the government to limit housing sales in the nation. Housing prices had soared for months leading up to the restrictions, and it finally appears that they may be under control.

Prices dropped just over .2 percent in the last month. More than half of the nation’s cities reported declines in residential real estate prices. Both Shanghai and Beijing were among the cities reporting a decrease in housing prices.

The Chinese government has announced that they will maintain the current restrictions within the housing market. They hope that the market will continue to stabilize, and become even more affordable.

While the actions of China’s government have kept property prices under control, they have also caused many developers to take significant losses. As such, many developers have opted to cut prices on their projects in order to continue to attract new clients and remain in business.

Other developers, however, have opted not to cut prices, and instead are simply hoping to wait out the tough times in hopes that the government policies will become less restrictive in the near future. However, with the announcement that the government has no intentions of loosening up the restrictions in the near future, many of those developers may be changing their tune in the near future.

Of the major cities that experienced a decline in the past month, Shanghai saw prices drop roughly a half percentage point. Beijing experienced a slightly smaller decline in prices, as they fall nearly a quarter of a percentage point in the past month.

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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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