The report says the global financial crisis is resulting in lower outbound demand, over- production in some industries and increased unemployment.
The central bank points out the weakening key industries such as the housing sector will impact many other industries, who may face capital shortages. But the central bank also says that with a vast domestic market, China still has great potential, and its economy will continue growing.
Poly and Zhujiang are just two of the developers who are eager to sell. With real estate depreciating, prices are falling to help developers get their hands on some badly needed cash.
One real estate project near Olympic Forest Park is offering a 20% discount, cutting as much as RMB1 million off the asking price. A real estate project in Huilongguan has cut the price for some apartments to RMB6,500 square meter (less than US$1,000, about $90 per square foot).
CCTV International said that after the Chinese New Year, prices for many new apartments in Beijing have commonly declined by as much as 35%.
Even with high unsold inventories, developers have continued to build.
Zhujiang will be promoting four new projects in Beijing in the first half of this year, and will start selling two new projects in Tianjin. ‘The supply will be much higher than 2008,” declared Liu Zhilong. Shimao will have over 30 projects on the market this year, aiming to realize RMB15 billion in sales, while R&F is looking at 38 new projects.