Housing market is cooling after decade of growth
The Chinese real estate market is cooling, with the transaction volume starting to fall and mortgage rates rising nationwide, experts said.
The sector showed signs of cooling at the beginning of 2014, with most of the nation’s cities recording falling transactions on both a yearly and monthly basis. Prior to that, the property market witnessed 12 years of growth.
According to the real estate research institute China Real Estate Information Corp, shrinking supply and tightened mortgages played important parts in the transaction drop.
Jia Kang, head of the Institute for Fiscal Science Research under the Ministry of finance, said China’s housing market also showed signs of a differentiation in prices in January, which may lead to a price slump in second- and third-tier cities, although prices in Beijing and Shanghai are likely to maintain their current level.