Housing Developers Scurry as Tighter Regulations Squeeze Property Market
Last year was a record-breaker for China’s closely watched residential real estate market. Home sales exceeded 11 trillion yuan (US$1.6 trillion) nationwide for the first time, according to government statistics, and prices in hot markets such as Shenzhen experienced year-on-year growth of up to 60%.
But since late 2016, residential transactions have been falling. In January, for example, sales of pre-owned homes in Shanghai fell to their lowest level in five years. And in Shenzhen, sales of pre-owned homes declined 30% that month from the December level.