[photopress:propertyprudent_apartments.jpg,full,alignright]Goldman Sachs, a leading global investment banking, securities and investment management firm, said in a recent research report that it retained its prudent attitude towards the real estate market in mainland China.
Perhaps we should get a definition of the word prudent: sagacious in adapting means to ends; circumspect in action, or in determining any line of conduct; practically wise; judicious; careful; discreet; sensible.
If that is what Goldman Sachs is suggesting it seems judicious, careful, discreet and sensible.
The report suggests that housing sales around the Yangtze River Delta region have another drop coming in the near future.
For the listed real estate developers used in this research, average housing sales for the first half of 2008 accounted for only 30% of the sales goal for the full year. Which means to make-up, sales have to be 70% in the second half which presents real estate developers with a tough challenge.
Source: Trading Markets