Source: CCTV.com

02-28-2008 11:17

The chill in China's property sector in recent months continues. Transaction volumes in both unfinished properties and second-hand properties are still falling.

The chill in China's property sector in recent months continues. Transaction volumes in both unfinished properties and second-hand properties are still falling.

Official figures show that last week, the average daily transactions of unfinished properties in Beijing dropped by nearly 50 percent. Although there were signs of growth, the average daily transactions during the last two-week post-holiday period have fallen by 40 percent.

Meanwhile, the second-hand property market is also seeing decreasing transactions. Up to this Tuesday, the average daily transactions this month were only 50 units, down over 40 percent from January.

Insiders say the situation may change at the end of this month. But they also say under the current tightening of monetary policy, most consumers are still wary, and are holding out for better deals.

Nie Meisheng, Chairman of China Real Estate Chamber of Commerce said "The current situation in the property market is a bit like that in the stock market. The downturn may last for a while. But the increasing demand in the property market hasn't changed. The dropping transactions are just a sign that the market is rationalizing. I think it's good for the long term."

China's latest measures to rein in mortgage loans have cooled down the red hot property market. In response, many developers have begun offering more favorable policies to boost sales and improve their balance sheets after the Spring Festival holidays. But it seems that's just not enough to attract potential buyers.

Editor:Xiong Qu