Property transactions in China's major cities hit a record low over the past National Day holiday as more potential homebuyers adopted a wait-and-see attitude.
Statistics from the Beijing Real Estate Transaction website revealed that the average number of daily deals over the holiday week fell 72 percent year-on-year in the capital to 69 units, making it the worst period so far this year for the property sector.
Shanghai Autumn Real Estate Expo, regarded as a barometer of the industry, attracted 130,000 visitors from Oct 1 to 4. Although this was the same number as 2006, its transaction volume fell 37 percent over the same period.
The situation is equally gloomy in Shenzhen, where a five-day real estate expo was held over the National Day holiday.
While 20,000 sq m of property was changing hands every day at the fair in 2006, the daily amount ranged from 4,000 to 9,000 sq m this year.
Luo Yuan, general manager of Beijing-based Sunrun Real Estate Agencies, said one of the reasons for the sluggish market was that property prices still remain beyond the reach of many potential buyers.
Liu Xia, a 31-year-old journalist, has been flathunting in Beijing for more than six months but remains reluctant to take the plunge.
"Although some developments have offered discounts as high as 30 percent, a 100 sq m apartment along the eastern Fourth Ring Road still costs at least 1.5 million yuan, and that's beyond my budget," Liu said.
Liu is also concerned that, should she buy property now, she will lose out if prices fall.
"There might be still room for property prices to slide," Liu said, adding she is also quite concerned about the overall economy.
Property prices in 70 major Chinese cities rose 5.3 percent year-on-year in August, compared with 7 percent in July, the National Development and Reform Commission said Monday.
The growth rate has dropped for eight months in a row this year, showing signs of nationwide decline after a two-year surge.
(China Daily October 7, 2008)
