Source: CCTV.com

02-21-2008 11:18

China's latest measures to rein in mortgage loans have cooled down the red hot property market. Many developers have continued their special offers after the Spring Festival holidays to improve their better balance sheets. But as the trend of property prices remains unknown, most potential buyers are not in a hurry to sign contracts with developers.

China's latest measures to rein in mortgage loans have cooled down the red hot property market.(Photo: xinhuanet.com)

Beijing's property market remained sluggish after the holidays. Developers have had to offer more favorable policies to boost sales, although they had previously announced that the price would go up after the Spring Festival holiday. Some have chosen to offer direct discounts, while others have promised to cover special fees in transactions.

Experts say investment-oriented buyers only account for 20 percent of all buyers, while the purpose for most buyers is self residence. This means actual demand in the market is high. New government policies have showed their effects, but property prices will still be in a rising trend in the long term, despite the stagnant market situation at present.

Gu Yunchang, Vice Chairman of China Real Estate and Housing Research Association said "The property price is becoming more rational at present. But in the long term, it will be stable and will continue to rise gradually."

Figures from the official website of Beijing's property transaction show that there were only 85 contracts signed each day after the Spring Festival holidays. The number is one third of that in January, indicating that more potential buyers had chosen to adopt a wait and see approach.

Editor:Xiong Qu