Categorized | International

Residential Property Prices Decline for Fourth Straight Month in China

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Residential real estate prices continue to drop in China, as the most recent data indicates that they fell yet again for the fourth straight month in December. Prices dropped by a quarter of a percentage point nationwide, with each major city experiencing a loss.

The decline in pricing can be attributed yet again to the real estate market restrictions set in place by the Chinese government. While analysts around the world continue to debate how China’s economy will perform in 2012, the Chinese government has made clear their intentions to keep the current restrictions in place for the time being.

Although prices have dropped for four straight months, the overall decline has been minimal thus far. In fact, even with the restrictions in place, many developers exceeded expectations for 2011. With that said, many developers do believe that they will not nearly achieve the same results in the current quarter.

Predictions regarding the effects of the imposed property restrictions in China have been all over the place. Some analysts believe that China’s economy will experience a freefall over the next year. Others have predicted that the economy will face a gradual decline, but the overall impact on the nation will be minimal at best.

The overall performance of the housing market in China now seems to largely depend on the nation’s social housing project. Plans are in place to construct more than seven million homes this year. While the social housing units will likely contribute to falling real estate prices, they will have a positive impact on the overall economy.

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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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