Property market rebounds: still delicate

China’s property market rebounded in the first quarter with expanding transaction volumes. Developers are taking the opportunity to raise prices. But analysts say higher prices could dampen demand.

The just concluded Shenzhen Spring Property Fair saw the effects of higher prices. There were fewer visitors, and most are taking a wait-and-see attitude.

Developers say they sold less than 50 of the 200 units. Transactions are down 10 to 20% from last year.

CCTV quoted Zheng Yinghua, a Real Estate Agent who said ‘Home buyers are now more rational. They pay attention to the property’s overall conditions, added-value, and investment potential. And they are now more sensitive to price.’