Property market cools down
According to a statement from the website of National Development and Reform Commission (NDRC), property prices in China’s 70 large and medium-sized cities rose 8.2 percent year-on-year in June, compared with 9.2 percent in May. The slight drop of the growth rate indicates the property market is cooling down.
But there are some cities still “hot”, where new property price growth exceeded 13 percent year-on-year in July, including Urumqi, Haikou, Ningbo, Beijing and Hangzhou, which saw a growth rate of 20.2, 18.1, 14.7, 14.3 and 13.3 percent respectively. But all of the cities, Haikou excluded, experienced a drop of about 2 percent. There is another exception. Shenzhen is the only one in the 70 cities that has witnessed a price drop on a yearly basis, the price is 1.2 percent decreased.
Facing the falling property prices, some experts suspect that China’ banks may experience a credit crisis like US. But some other experts think that China’s banks are far from such crisis, despite the ongoing adjustment. “Some big corrections occurred only in a few cities that experienced crazy property price growth last year but don’t have enough demand to support the market,” “Besides, property demand in China is also much stronger than that in the US,” said Chris Brooke, president and CEO of CB Richard Ellis (Greater China).
The insiders believe that the current wait-and-see attitude adopted, does not mean housing demand is evaporating. And if the market does not drop as much as people expect after the Olympic Games, prices will back again and will probably even rise.
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