Hous­ing mar­ket is cool­ing af­ter decade of growth

China Daily (Canada) - - NEWSCAPSULE -

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.

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