Chinese Property Prices Drop in November
The China Real Estate Index System released the results of a survey conducted among real estate firms and property developers saying that the mean price for homes in November 2011 was 0.28% lower compared to October.
Residential property prices in China’s major cities reportedly saw their biggest decline on record, according to the China Real Estate Index System. One hundred major cities in the People’s Republic of China experienced their largest month on month decline, an indication, experts believe, that the Chinese government’s 2-year tightening campaign is not helping the real estate market.
The survey has been getting a lot of attention since China removed its national property price index early this year. China’s real estate prices, according to experts in the region, are about to go through very tough times. The People’s Bank of China said that developers are facing tighter liquidity.
According to experts, what really scares developers now is that the Chinese government’s tightening program may result to panic selling. The situation has spurred price drops on homes in major cities such as Shanghai and Beijing.
The People’s Bank of China also indicated that developers will have to adjust to the 20% drop in prices. The major concern of chain reaction – because of the shift in prices – is still in the air, as the Chinese real estate seems to plunge to uncertainty.
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