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People's Daily Online>>China Business

Policies chill property sales

By Hu Yuanyuan (China Daily)

10:42, January 31, 2012

Potential homebuyers examine a developer's display in Qingdao, Shandong province, during the Lunar New Year holiday. Residential transactions in major cities slumped in 2011 and prospects are bleak for this year. (Photo/China Daily)

BEIJING - China's major cities saw a drop in property sales during the Lunar New Year holiday, indicating a further correction in the real estate market.

SouFun Holdings Ltd, China's largest property website, said on Monday that among the 29 cities it monitors, 27 experienced a drop in property transactions.

Property sales in Guangzhou plunged by 81.5 percent year-on-year. Those in Shanghai and Shenzhen also fell by more than 30 percent on a yearly basis, according to SouFun. Statistics for Beijing are not available because the capital's website on property transactions was closed during the festival.

Four second-tier cities - Jinan, Wuxi, Harbin and Ningbo - saw no transactions at all, SouFun statistics showed.

According to Chen Guang, an analyst with Century 21 China, this Lunar New Year was the bleakest period since 2004.

"It will not be surprising to see a further drop in property transactions because there is no sign that restrictive policies will be loosened this year. Some property developers have even shut down sales offices," said Chen.

"Given the current situation, it is almost certain China's property market will undergo a further correction in the first quarter," Chen added.

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PD User at 2012-01-3194.195.123.*
This is a very good example of human right promotion by the Chinese government. capitalism must be regulated to ensure that the 1% superrich does not dictates the life of the common people and cause miseries as in US and Europe. well done China.
helen at 2012-01-31203.82.92.*
The speculators suffer a temporary defeat but they will continue to find loopholes to circumvent China measures to curb rising property prices. With China's programme to build 38 million affordable housing for more than 100 million Chinese, the CPC will go one step further to providing housing to all the Chinese families. And the quota will be increased to more than 38 million housing with participation from all local governments and the private sectors.There is nothing that the CPC cannot do to surmount problems facing the Chinese people and quickly too. Such is the 'Socialism with Chinese characteristisc'.

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