Beijing Escorts: Away From China’s Top Cities: Property Reassurance
China’s property-market restrictions instituted in April, including higher mortgage down-payment requirements for second and third apartments, appear to be achieving their intended effect. High-end property sales have fallen sharply in China’s wealthiest cities such as Beijing and Shanghai. If official statistics are to be believed, prices have so far fallen only marginally, but they are expected to come down further.
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The relatively mild slump in China’s lesser cities is mostly because they experienced a less fantastic boom. During the major property market up cycle from mid-2009 to March 2010, prices rose by only 10-20% in the Tier 2 and Tier 3 cities, according to the developer survey. That compares with an average 34% rise in the top-tier cities of Beijing, Shanghai and Shenzhen, Standard Chartered said, citing data from the China Real Estate Information Corporation.
See the full article from “Wall Street Journal (blog)”