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Two months have past since the Chinese government started taking measures to curb the hot real estate market. The new policies have been effective - the housing market in Beijing kept to a downward trend in June. But prices haven't changed - developers have adopted a wait and see approach.
The Beijing Municipal Commission of Housing and Urban-Rural Development says it's given the go-ahead for 8 commercial housing projects. But none of them have sold. Property insiders say the reluctance to buy is due to the market entering a wait and see period.
Li Wenjie, General Manager of Beijing Centaline Property said "Developers are now holding two kind of views. Some think the government's housing market curbing policy is only temporary, and it will start to loosen towards the end of this year. Other developers believe the property price will decrease，but they do not now how much it will go down. These are why there hasn't been a large scale price cuts "
Also contributing to the housing slump is the policy restricting pre-owned housing loans issued at the end of May. Li says the results of government's curbing policy will become clearer in July.