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Guangzhou to see housing price drop

Guangzhou to see housing price drop
0 CommentsPrint E-mail CCTV, May 25, 2010
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In response to the central government's call to cool down the housing market, the city of Guangzhou has issued its related policies.

The housing market in Guangzhou has seen a drop in transaction volume since the implementation of relevant policies. From April 15th to May 14th, transaction volume has decreased by about 70 percent year-on-year while average prices are down about 7 percent month-on-month.

Wang Wenbo, Deputy Director of Guangzhou Housing Administration Bureau, said, "The central government aims to curb unreasonable demand. Under this background, Guangzhou is also increasing land supply and supply of low-income housing. With demand decreased and supply increased, the housing price will be stabilized."

Guangzhou is also improving its management of price-limited housing. Currently, around 12 thousand families or individuals have applied to buy.

In comparison with Beijing's local housing policies, Guangzhou's version is much milder as it has no tough restrictions on loans for a third property.

Huang Tao, General Manager of Centaline Guangdong Division, said, "I think Guangzhou's housing policies suit the city's situation."

Although housing prices are still hovering at a high level, the up-trend has been curbed. With a much decreased transaction volume, experts predict there will be a price drop.

"Guangzhou's housing prices will fall by 10 percent. A dramatic fall is not likely but price falls are inevitable." Huang said.

Since the end of last year, the central government has issued various housing policies. In response to that, many local governments have unveiled their versions. The housing price up-trend has been effectively curbed.

 

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