Categorized | International

Real Estate Prices in China Finally Showing Signs of Slowing Down

Please Share!

China’s fast growing real estate market looks to finally be slowing down thanks to restrictions set into place by the government. The government had imposed the restrictions to prevent excessive price inflation, particularly in the housing market. Housing prices in China had been increasing at unbelievable rates prior to this past month’s slow down.

Analysts believe that China’s imposed restrictions on the real estate market may be working, as price increases slowed down significantly in the past month. The majority of China’s cities still experienced increases, though they were only minimal to moderate gains in price.

Most analysts, though, also believe that the restrictions won’t entirely prevent home prices from rising, as there are indications that price increases will continue for some time. The effect of the governmental restrictions is being seen, though they will not cause a sudden change in the market. Beijing, however, may be an exception to what is being claimed; as the city saw its home prices drop to its lowest level in over a year.

The response to the government restrictions imposed by China has not been positive among all crowds, as some believe that such restrictions will damage local economies that rely on the sales of land to generate revenue. Furthermore, many others believe that, regardless of any kind of government intervention, the housing market in China will see its bubble burst. These analysts are estimating that some kind of crash in the Chinese housing market will take place within the next eighteen months. However, nothing has really indicated that such a decline will take place.

Please Share!

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.

Leave a Reply

Twitter Chat