Other Coverage of Weak Real Estate Market

Chinese Realtor: 2014 Real Estate Risk Falling Prices

China Appears on Verge of Dangerous Real Estate Decline
For years, Ren Zhiqiang, one of the largest property developers in China, said he has been attempting to draw attention to the risks in China’s real estate market. He is chairman of Huayuan Property, which has a market capitalization of 4.5 billion yuan, ($740 million).

He alerted investors to slowing house prices in a real estate award ceremony on Jan. 21 of this year.

“I’ve raised the topic of ‘risk’ in real estate reports for the first time in over 10 years,” Ren said. “It’s a very dangerous thought that developers still believe house prices will increase like in 2013. That’s my biggest worry.”

Housing price growth has been worse in third and fourth tier cities so far this year, with a declining trade volume for the last three months.

‘Ghost Cities’
The slowdown in the real estate market is having a more pronounced impact on the smaller cities than many predicted.

“Real creative and big companies in China are located in top tier cities, and almost none of them are in China’s third and fourth tier cities. This leads to brain drain and population outflow in those places,” Jason Ma said.

“So small cities can only rely on natural resources such as mining or government projects. But local governments have less and less ability now because of huge local debts.”

No comments:

Post a Comment