Chinese property developers, hard-pressed by falling sales and tightening credit, have never waited for ‘Golden September and Silver October’, the traditional hot season for the property market, this anxiously.
But experts say they are likely to be disappointed this year as there is no sign of any recovery in the sector because of a glut and stricter credit controls.
The soaring supply in September, including a large number of low-cost units, will be partly responsible for blocking the chances of any market rebound in Beijing.
There will be nine low-cost housing projects and 27,000 apartments entering the capital’s property market before the end of October, with the average price being RMB4,000 per sq m lower than the commercial ones.
According to Yahao Real Estate, a Beijing-based property brokerage firm, around 80 commercial residential projects will be put up for sale in September and October.
The situation in Shanghai isn’t much better. Property prices have held steady there in the past months but are now showing signs of a meltdown.
The government shows no signs of easing on the credit policy for real estate firms.
Source: China Daily