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China's property sector shows signs of cooling after restrictions

08-04-2011 15:18 BJT

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After a slew of government tightening measures, China's red-hot property sector is showing further signs of cooling. The biggest indication comes from last month's data that shows the average property price in 100 Chinese cities was up -- but ever so slightly.

The China Index Academy released a report on property prices in the country's 100 largest cities. It says home prices in July averaged 8,874 yuan per square meter.

That's up at a slower pace of about 0.2 percent from June. Notably, 33 cities saw price drops from the previous month.

In Guangzhou, the capital city of Guangdong Province, home prices and trade volume both fell last month. More importantly, home transactions in downtown areas plunged nearly 40 percent, hitting a record low. Experts say that's because more potential buyers are turning to properties in the suburbs.

It's not only China's first-tier cities impacted by the government's curbing measures. Property markets in second and third-tier cities are also dampening.

Shao Wei, property developer from Xuzhou, Jiangsu Province said, "Due to tightening policies, we are seeing less customers."

As the central government maintains its tough stance on the market, property developers are feeling the pinch. Some are especially troubled by a capital shortage. In Shanghai, a majority of banks suspended Real Estate Investment Trusts, adding more pressure to the developers.

Editor:Li Wanran |Source: CNTV.CN

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