Angry Home Owners Protest In China As Property Prices Fall

China Photos/Getty Images

Falling home prices in China have reportedly caused an outburst of anger among property owners.

MarketWatch reports owners protesting at the Shanghai sales office of Greentown China Holdings about a 25% cut to prices within a five-day period.

The Chinese Government has moved to take the heat out of the property market and limit speculation in a series of measures including property-purchasing limitations, price restrictions, housing tax reforms and loan ceilings.

The measures have been working with real estate investment weakening so far this year.

However, Greentown China Holdings says there has been a gradual relaxation or withdrawal of restrictive purchase policy in many cities.

“The real estate market is gradually rejuvenating itself,” the company says.

Housing starts and sales in China both experienced a bad run in the year to May.

Consumers had a considerably less positive outlook of property in the most recent Westpac MNI China Consumer Sentiment survey.

The chart below from the Westpac-BREE China Resources Quarterly shows the steep fall in city house prices in China:

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