Source: CCTV.com

03-28-2008 10:49

Real estate prices in southern China's Guangdong province have been dropping since the end of last year.

Real estate prices in southern China's Guangdong province have been dropping since the end of last year. (CCTV.com)

In the city of Shenzhen, many home owners are feeling the pinch from shrinking property values.

Mr. Wang from Shenzhen bought an apartment in July last year with the help of a mortgage from his bank. But only half a year later, the prices of new apartments in the same district are starting out much lower.

Mr. Wang, Home Buyer, said, "I bought my undecorated apartment at 16 thousand yuan per square meter. Now, decorated apartments are selling at 8 to 9 thousand yuan per square meter. It dropped so quickly."

Mr. Wang says he has not even lived in the house. But, the 76 square meter home has seen its value shrink more than 400 thousand yuan. The pressure to pay his mortgage has become harder to bear. And if property prices continue to drop, his situation will only worsen.

Mr. Wang's circumstance has become quite common among recent home buyers in Shenzhen. New homes are priced several thousand yuan lower than comparable homes sold just a few months ago.

Mr. Wang, Home Buyer, said, "We understand the price is determined by the market. But we're still hoping the government and developers will compensate us in some way."

Given the transaction volume from the second half of last year to now, no less than 5 thousand home buyers are facing losses in property value.

And lawyers say since there are no contract provisions to ensure property value, it's hard for buyers to demand and get compensation.

Editor:Zhang Pengfei