Based on the current situation of the housing market, it is estimated that the sales of residential houses is to decline to the level 10 years ago this year. This is attributable to the economic uncertainties as a result of the global slowdown and the tight monetary policy at home, which draw forth homebuyers’ and investor’s wait-and-see attitude.

It is released in the latest report on Shenzhen’s housing market that the average housing prices in May declined 36 percent form the level of last October at 17,350 yuan ($2,540) per sq m to 11,014 yuan per sq m. According to the insider prices are expected to drop another 10 percent as some struggling small and medium-sized real estate developers and speculators are selling properties for cheap to maintain cash flow. And it is reported in some areas housing prices have already dropped 50 percent.

In the first half of this year, the total supply of new residential houses reaches 1.54 million sq m or so, 46 percent of that of the year before. Based on the situation, it is forecasted that another 3.5 million sq m residential housing area will be sold later this year.

It is generally believed that the tightening mortgage policy attributes great to the cool down of the overheating housing market, especially that in the Beijing, Shanghai, Shenzhen, as the housing prices rising has been mainly attribute to speculation.

Popularity: 2% [?]

decline, global economy, home sales, Shenzhen, uncertainty