Chinese Central Bank Warns Of 'Relatively Large' Property Collapse This Year

Leaning Tower China

China Finance, a publication of China’s central bank, has warned that there’s ‘very large pressure’ for Chinese property prices to fall in the second half of this year.

China Daily:

Government measures to curb property speculation have had “initial” results and further effects will be evident in the second half, wrote Zhou Jiang, of the housing ministry’s research centre. The article is in the July 16 edition of the magazine.

Declines in cities where prices previously rose quickly will be “relatively large,” Zhou wrote without naming cities.

In the meantime, land prices just rose 1.52% quarter-on-quarter in Q2, and as we’ve previously discussed here property prices across 70 cities fell 0.1% in June vs. May.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.