Property faces ever-time low
During the past National Day holidays, the Golden Week, property transactions in China’s major cities witness an ever-time low as more potential homebuyers decided to wait and see.
Statistics from the Beijing Real Estate Transaction website showed that the average daily deals over the last week fell to 69 units, which are 72% down year-on-year in the capital. It brought the worst situation for the property sector.
Even Shanghai Autumn Real Estate Expo, which implies the state of the industry, attracted 130,000 visitors from Oct 1 to 4,which were as many as in 2006,its transaction volume fell 37% compared with the same period of last year.
The same gloomy situation occurred on the five-day real estate expo in Shenzhen over the National Day holiday.
While daily transaction of 20,000 sq m of property at the fair in 2006, the amount ranged from 4,000 to 9,000 sq m this year.
Luo Yuan, general manager of Beijing-based Sunrun Real Estate Agencies provided a reason saying that the property prices still unaffordable for many people in need.
Liu Xia, a 31-year-old journalist, has been hunting for a flat for more than six months, facing this plunge, still hesitate to make the decision.
“Although great discounts as high as 30 percent have been offered, a 100 sq m apartment along the eastern Fourth Ring Road still costs at least 1.5 million yuan which is beyond my reach.” Liu said.
Liu also concerns that should she buy property now, she will suffer losses if prices continues to fall.
“There might be still margin for the prices to fall,” Liu said, expressing her concern about the economy as a whole.
The National Development and Reform Commission released yesterday that property prices in 70 major Chinese cities rose 3.5 percent year-on-year in August, compared with 7 percent in July.
The growth rate has declined for eight consecutive months this year, indicating a nationwide decline after enjoying two-year surge.
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