Chinese home prices likely to fall this year: Analysts
May 30th, 2011 - 11:12 am ICT by IANSBeijing, May 30 (IANS) Chinese home prices are likely to fall by more than 10 percent this year due to the government’s prudent monetary policy and other tightening measures, analysts said.
Home transactions will decrease by seven percent this year while sales value may drop 10 percent as measures to curb excessive rises in home prices have deterred speculative home buying. That may drag property prices down by over 10 percent in 2011, the Beijing News Monday quoted Nie Meisheng, head of the China Real Estate Chamber of Commerce, as saying.
Dong Fan, professor at Beijing Normal University, expected a 10 to 15 percent decrease in property prices in the second half.
Qin Hong, analyst at the Ministry of Housing and Urban-Rural Development, suggested that developers accelerate construction of rental properties to increase housing supply and put a lid on the rapid rise of home prices, reported Xinhua.
“Public rented accommodation should dominate the country’s rental industry while the private rented sector is a necessary complement,” Qin said, while adding that construction of rental housing projects requires massive financial inputs and favourable taxation policies.
China’s home prices rose in 67 of 70 cities monitored by the government in April from last year. New home prices in Urumqi, capital city of Xinjiang Uygur Autonomous Region, posted the biggest gain, up 9.3 percent in April from a year earlier.
- China to recruit 8,000 police officers - Jan 31, 2012
- Muslims celebrate Eid in China - Aug 31, 2011
- Over 1,400 evacuated after quake hits China - Dec 02, 2011
- 12 killed in China riots - Feb 28, 2012
- Toxic gas leak kills five in China - May 09, 2012
- Chinese Government to build 10 million subsidized homes - Mar 10, 2011
- 'Post riots, China's Xinjiang region still remains unstable' - Dec 25, 2010
- Beijing home prices drop by 11 percent - Jan 16, 2012
- Now real estate sector needs reform (Comment) - Oct 30, 2011
- 12 killed in China riots (Lead) - Feb 29, 2012
- China to boost energy-efficient buildings - May 06, 2012
- Foreigners in China can now buy only one home - Nov 14, 2010
- Lack of funds hits China's affordable housing - Jun 29, 2011
- Housing turns into costly affair in China - Feb 20, 2011
- China blames terrorists trained in Pakistan for Xinjiang attack (Lead) - Aug 01, 2011
Tags: autonomous region, beijing normal university, chamber of commerce, china real estate, developers, home buying, home transactions, housing projects, measures, ministry of housing, monetary policy, necessary complement, private rented sector, rapid rise, rental properties, rented accommodation, rural development, second half, taxation policies, xinhua