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BJ, Shanghai house prices to drop. Price cuts spread across the country

PS: I remember one dude from Gov who proudly said: "Here at least 20 years of prise rising". Plan changed.

China facing same problems as USA Real Estate Market. Many angry people who bought homes and not moved in yet has seen up to a 37% decrease in price and the developers are not refunding their money or giving them partial money back. Wait until beginning of next year when housing prices will drop again. Many developers have to replenish their capital in order to complete their projects and banks are making it harder for developers to get loans.

Too bad for all the speculators who bought more than 2 homes.
Everyone Negotiate your rent for next year!!

"But but but.. the government will never let it happen. The Chinese government is so strong not like your country. House prices will never fall here".

At least that's what I have been told on more than one occasion here.

As someone on the market for a house right now, you can definitely see the winds starting to change. Although agents are saying the prices are not going down, there are more and more calls about anxious landlords that need to offload their property. Will be interesting to see how long the gov will let this play out. They could easily re-ignite the market if they loosened bank credit or removed the 60% equity and additional tax requirements for the 2nd homes. I think there are still a lot of buyers that are waiting on the sidelines right now (me included!)

Dave