Business / Industries

Property market shows signs of cooling down

(Xinhua) Updated: 2014-03-31 10:32

Property market shows signs of cooling down

Models pose to promote property sales in Yichang, Hubei province, March 30, 2014. [Photo/]

BEIJING - China's red-hot property market has been showing signs of cooling down, with some new housing projects cutting prices.

Cuts were reported in the cities of Beijing, Hangzhou and Shenzhen, where property sales have been strong.

A new real estate project in suburban Beijing priced its apartments lower than the market estimate by 12 percent or about 3,000 yuan ($490.2) per square meter to 21,000 yuan in mid-March.

Property market shows signs of cooling down

Property market shows signs of cooling down
A project in Xiaoshan district in Hangzhou, capital of East China's Zhejiang province, lowered the price of its apartments by 17 percent or about 2,500 yuan per square meter to about 12,500 yuan.

The cooldown has been supported by official data.

Home prices in major Chinese cities grew at a slower pace in February. Fewer cities saw month-on-month price rises, according to the National Bureau of Statistics (NBS).

A sales manager with a property company, on condition of anonymity, told Xinhua that developers were cautious in talking about "price cuts". Instead, they are using tricks like giving free interior renovation, free household appliances or a free down payment to woo buyers.

Despite cooling down signs, industry experts warned against exaggerating the trend.

Some property developers may cut prices to sell quick and get liquidity. But that does not mean overall property prices will go down, said Gu Yunchang, an official at the Ministry of Housing and Urban-Rural Development.

The property market is becoming rational and price changes, triggered by market demand, are normal, said Zhu Zhongyi, deputy head of the China Real Estate Industry Association.

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