China has joined the United States, Britain, Spain and others on the list of nations suffering a real estate decline.
Although the last national statistics showed single-digit growth from July 2007 to July 2008 in the average price of commercial and residential real estate, real estate brokers say prices are down from peaks reached earlier this year, while the number of transactions has plunged.
This downturn comes as the growth rate of Chinese exports has slowed — sharply in renminbi terms — and stock markets have plummeted.
The confluence of events has resulted in what economists describe as a deceleration in China’s economic growth — although at nearly 10% it is doing better than almost any other nation.
Brokers say that sales volumes first dropped precipitously in southeastern China, and then the decline spread across the country. Faced with few buyers, sellers started cutting their prices for residential and commercial real estate.