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.
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.