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Beijing real estate prices drop as year ends


Without_a_car
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Beijing real estate prices drop as year ends

hqsb posted on November 24, 2011 01:08

http://www.globaltimes.cn/DesktopModules/D...&PortalID=0

 

Homes in Beijing have seen a dramatic price drop as the year comes to a close. Insiders say the reduction comes as developers need cash returns that are not coming fast enough.

 

A local property company has been promoting its houses in Beijingxiangsu community, located near the East Fifth Ring Road, for 11,600 yuan ($1,825) per square meter and some units are selling for as low as 480,000 yuan, according to the Beijing Morning Post.

 

Figures from the Beijing Real Estate Trade and Management website show the average price of an apartment in this community has dropped from 22,500 yuan per square meter to 11,600 yuan, said the report.

 

The company started pre-sales in June, but none of its apartment projects have sold out, a sharp contrast compared to last year's busy real estate market.

 

Another builder, Vanke, has also reduced the price of several projects by 10 to 20 percent, indicating the housing market in Beijing is in a rapid decline, according to the report.

 

Zhang Yue, a senior analyst at Beijing Homelink Real Estate, said many real estate companies followed Vanke's lead and reduced their price by between 10 and 20 percent.

 

"It is unusual to see a 50 percent reduction," said Zhang.

 

An anonymous staff member at a local property company told the paper a half-price home comes close to the original cost of the property, adding possible reasons for the huge discount.

 

"At the end of the year, many real estate developers have to repay loans to the bank and pay the construction workers," he said.

 

Yu Liang, the president of Vanke, recently told the press his company has "gone into hibernation."

 

"Cash on hand is more important than profits now," he said.

 

Zhang Dawei, marketing director of Centaline Real Estate Beijing, told the Global Times the decrease in home prices shows the government's policy on the housing market, such as purchase restrictions and loan regulations, has had an effect.

 

"If the government doesn't loosen the policy, I think the prices might keep dropping lower," he said.

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China Property is a City of Cards.

 

If Tiongland prices drop 60%, you think Tiongs will sell sg property, and go home for fire sale?

Edited by Without_a_car
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If Tiongland prices drop 60%, you think Tiongs will sell sg property, and go home for fire sale?

Most Tiongs who buy SG property use cash to buy their China House of cards one.

My Tiong colleague working Shenzhen rents from 1 young 30ish Landlord his apartment who owns 20 units in different parts of Shenzhen.

Every 2 months go for 1 month tour....

 

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Most Tiongs who buy SG property use cash to buy their China House of cards one.

My Tiong colleague working Shenzhen rents from 1 young 30ish Landlord his apartment who owns 20 units in different parts of Shenzhen.

Every 2 months go for 1 month tour....

 

I though the smart tiongs already cash out parking their money in Sg waiting for the market to collapse in tiongland?

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