Beijing Engineers The Decline In Resi Property Values
Sober Look | Jun 20, 2012 03:53AM ET
China's residential property values are continuing to decline. The chart below from ISI Research shows that the rate of decline is now similar to the lows in early 2009. And data from ISI tends to be more accurate than the official numbers coming out of China's housing ministry.
But make no mistake about it - much of this decline has been engineered by Beijing, as they Reuters : ...high inventories will cap any quick rebound in home prices in the near-term, [China Securities Journal] cited Home Link analyst Chen Xue as saying.
Vanke, China's largest developer by sales, said earlier this month it would take about 11 months to sell down unsold stocks in key cities such as Beijing, Shanghai and Shenzhen.
"I'm not worried about a home price rebound as long as the government keeps its tightening stance," Hui Jianqiang, head of research at the China Real Estate Association, told Reuters after the data.
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