First and Second Tier Prices Will Fall in 2015, Half of Developers Will Disappear

A new CASS report projects home prices will continue to slide at the start of 2015 and developers will exit the market, but conditions for a crash do not exist.

Home Prices to Decline, Purchase Limits to End
Home prices are set to decline further next year and cities that still restrict multiple-home purchasing are expected to scrap the policy, a report by an institute under the Chinese Academy of Social Sciences said on Friday.

Property downturn since the beginning of the year had prompted most of the cities in which there were restrictions on home purchases to ease them. There are only five cities where the curbs are still in place - Beijing, Shanghai, Guangzhou, Shenzhen and Sanya.

"The first- and second-tier cities have entered a relatively oversupply period. Home prices would continue to drop and restrictions are expected to be eased completely," said Zou Linhua, a researcher with the National Academy of Economic Strategy, under the CASS.

More in Chinese: 报告:一二线城市房价还会降 限购或全面放开

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