The Chinese government has been trying all year to clamp down on the property market through all sorts of tougher regulations.
They’ve restricted the number of houses one can buy and increased required down payments for example.
The sum total might finally be starting to have a lasting effect, as property transactions are down across many of China’s major cities according to anecdotal evidence reported by China Daily.
Resales appear in the worst shape:
The secondary housing market is even more discouraging. Cancellations of orders have risen by as much as 10 per cent for some real estate agents as a direct result of the city’s new policies.
The ruling that limited the new apartment purchases to one unit per household has changed many property investors’ ideas and these have been a major reason for the cancellation of orders.
Wei Chao, at the Hulian Housing Agency, admitted that this has been his toughest season since he began three years ago: “Sales of second-hand apartments are down 80 per cent after the new policy. But we’re in a better situation because some agents haven’t sold a single house in the past week.
“Some second-hand home dealers have cut their prices, but they’re still getting few enquiries. Many people think that prices will go down further.”