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Chinese regime policies for slowing down the over-heated property market are biting. Home prices in the biggest cities are sliding and the largest real estate agencies are closing outlets because of a plunge in sales volumes. Global leaders looking to China as an engine for growth are watching closely for signs of a damaging hard landing.
The Chinese regime has restricted bank lending and has put limits on the number of homes people can buy. It's an effort to cool what many believe is a property bubble. But there are fears prices could fall too fast, hitting economic growth.
Weekly data released on Monday showed house prices were flat, or falling, in China's most popular cities. It adds to circumstantial evidence that developers are slashing prices to clear their stock.
State media reported broker Centaline Property Agency Limited said last week it would close 60 outlets and lay off 1000 workers, while Century21 Real Estate closed 34 outlets in the first two quarters of the year.
Property sales volumes on a sales website fell 17 percent between September and October, state media reported.
[Mr. He, Shanghai Real Estate Broker]:
Chinese regime policies for slowing down the over-heated property market are biting. Home prices in the biggest cities are sliding and the largest real estate agencies are closing outlets because of a plunge in sales volumes. Global leaders looking to China as an engine for growth are watching closely for signs of a damaging hard landing.
The Chinese regime has restricted bank lending and has put limits on the number of homes people can buy. It's an effort to cool what many believe is a property bubble. But there are fears prices could fall too fast, hitting economic growth.
Weekly data released on Monday showed house prices were flat, or falling, in China's most popular cities. It adds to circumstantial evidence that developers are slashing prices to clear their stock.
State media reported broker Centaline Property Agency Limited said last week it would close 60 outlets and lay off 1000 workers, while Century21 Real Estate closed 34 outlets in the first two quarters of the year.
Property sales volumes on a sales website fell 17 percent between September and October, state media reported.
[Mr. He, Shanghai Real Estate Broker]:
"In Shanghai's Jiading district, only a month after buying an apartment, the price could fall [about 50 to 60-thousand dollars]. Recently in the market as a whole, buyers may be slowing down to see which way the wind blows."
Experts said housing had become too expensive for most people to afford.
[Liu Kaiming, Head of The Institute of Contemporary Observation]:
"The income of many people in Shenzhen is only about [300 dollars] a month. If they don't eat or drink, it will take them a year's income to buy [10 square feet] of an apartment. It will take them 100 years to buy a set of rooms. The average person can't afford to buy an apartment even after working for a lifetime."
Chinese leader Wen Jiabao said on Sunday the policies directed at the property market would remain until prices fell to a reasonable level.
Ben Yang
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