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Home prices still falling across China

Home prices still falling across China

By the end of January the cost of residential property in China had fallen for the fifth month in a row following government controls aimed at cooling the property market.

Officials in China are determined to continue to impose stricter lending measures designed to result in price correction. The measures introduced over the last two years have included introducing a limit on residential property purchase and increasing interest rates in an effort to reduce property speculation.

As a result levels of house sales and prices have fallen in most major cities and the amount of loans to domestic buyers and real estate developers had fallen by more than a third during 2011 when compared to the previous year.

Industry observers predict further price falls across Chinese property in the months ahead as long as the tightening policies remain in operation.

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Published: 06-Feb-12

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