China property tightening affects home sales during holiday week
A wave of limitations imposed on housing markets in key China’s cities the previous week have already unnerved some purchasers as well as developers, reducing the area of new homes sold in places, including Beijing and Shenzhen by more than half.
Up to 20 cities have just imposed measures, such as higher mortgage downpayments for the purpose of cooling hot property markets, which have spurred official alarm in Beijing as well as fresh worries regarding China's ballooning debt.
The previous week it was a public holiday in China to mark National Day, and simultaneously a high season for property sales. Property agents told that prices of new homes sold in the southern city of Shenzhen and Beijing descended 20% the previous week to entice clients, compared with last week.
The new tightening measures appear to stringent enough. That’s a real blow to confidence and folks are greatly worried that prices will descend, so it’s no wonder they’re observing from the sidelines now.