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Housing prices in Chinese cities has decreased while the government still curbs the property market, according to figures from their biggest real estate website last week.
China Real Estate Index System, connected with SouFun Holdings, issued an alert that property prices has last month has marked the biggest fall since September.
Prices of residential houses slip in 72 out of 100 cities surveyed by the firm in the previous month which is 12 more than in January. It basically dropped by 0.3%, according to SouFun. The average housing price is now at USD 1,390 for one square meter, compared to the rates in January.
The report from CREIS shows that the decline size is set to be even bigger in the coming months as more developers offer discounts.
According to a manager of Beijing WorldUnion Properties Consultancy, there is a possibility that the market may bottom out on the middle of the year and price declines might pick up pace. They are estimating that house prices could slide 20-30% on average this year and that the fall will affect the whole nation, including the 3rd- and 4th-tier cities that are previously less affected.
Several developers in China are permitting first-time homeowners to postpone their downpayments in order to boost their sales. Sellers did advance the 20% left, something that buyer don’t have to return for up to 3 years.
Although there has been a widespread price fall, deals in Shanghai and Beijing have rebounded in February. Despite of this, property developers are still pessimistic. While the market correction continues, several developers of property is set to alter their business portfolios to adapt in the changes.
According to the China Real Estate Index System, housing prices in 100 prime cities in China is significantly lower for the 6th consecutive month in February. This decline in housing prices has increased in February, showing that the nation’s real estate market is facing a negative outlook inspite of pressures in a cash-starved developer.
Wen Jiabao has earlier said that China will not waver on its control in the real estate sector and its efforts to reduce the prices to a more manageable level.
Housing prices is expected to continue falling in the coming months as it is becoming obvious that the government will not alter their tightening in the near future and those developers will be launching more projects. The real estate market will likely stay challenging this year but the possibility of a collapse is low while their cities prove to be resilient.
