Chen Jian, executive president of Beijing Olympic Economy Research Association, said at a press conference that the housing prices in Beijing after the Olympics will go up following a period of adjustment. What he did not say is how long that period of adjustment might be.
He said general housing prices in Beijing were rational when the city prepared the Olympic Games but that some bubbles arose between 2005 and 2007.
According to Chen Jian, from the end of 2007 to the first half of 2008, the city’s real estate market entered a period of adjustment, and the period may be prolonged after the Games.
However, he sees the room for housing price declines as being very limited and the ensuing huge housing demand will support the city’s housing prices.
But according to experts at a forum sponsored by the Beijing Times, Peking University and Renmin University of China, the shrinking transaction and price declines in China’s key property markets mark an end to the era where property enterprises could earn huge profits. More on this HERE.
Source: China Daily