Source: CCTV.com

12-08-2007 11:41

It's been an unusually chilly season for the real estate sector in the southern city of Guangzhou. A recent land auction saw more than half the deals going under the hammer at rock-bottom prices.

Only six real estate companies attended the auction. So the event, which had originally been planned to run for two days, was cut to just one day.

Li Wenjiang, an analyst said "In previous sessions, at least ten to twenty companies turned up. But developers from other places are not here for this time's auction."

And it's not just turn-out that's fallen, trading prices also hit record lows. Five of the thirteen pieces of lands on auction were sold at their lowest possible prices, while others went for prices just 10 percent higher than their lowest levels.

Han Shitong, another analyst said "The property market has been cooling down. Larger supplies of low-rent apartments and cheaper housing have damaged developers' confidence in the market."

Industry insiders also say they believe recent limitations on interior design have put a damper on keenness by developers to buy land.

 

Editor:Xiong Qu