China real estate be effected by housing curbs

China real estate be effected by housing curbs

In China, the construction industry is not as vigously as before. As we all know, since last year, there has worked out some policies to ban the large scale building. Mandy real estate businessmen have to transfer their targets from cement indusry to , and sand making plant.

Wenzhou posted the biggest decline for the sixth month, according to the data. A credit squeeze on smaller businesses in the city prompted a visit and pledge of financial aid from Premier Mr. Wen  in October.
Private data also showed the home market continued to cool. April home prices fell to a 14-month low, SouFun Holdings Ltd. (SFUN), the nation’s biggest real estate website owner, said on May 2. Residential values decrease 0.3 percent last month from March, the eighth month-on-month drop, said SouFun, which began compiling the figures in July 2010.
China’s home prices fell in a record 46 of 70 cities tracked by the government in April from a year earlier as officials pledged to keep restrictions on property purchases that have sapped buyer demand.
The drop in April home prices compares with 37 cities that registered a decrease in March, according to today’s data. The bureau switched from a national average to individual figures for the 70 cities at the start of last year.
The eastern city of Yangzhou in Jiangsu province will offer new buyers subsidies of as much as 0.6 percent of the total value of a home, Xinhua Daily reported on May 8, citing the local finance bureau. Attempts by Wuhu in Anhui province and Foshan in the south in the past six months to lift local property curbs were halted within a week.
“If they lift the restrictions and the market keeps falling, which it will, they’ve lost the fig leaf that enables them to say they’ve got everything under control.”
While the government maintained its housing curbs, it helped eased funding by lenders. The central bank lowered the amount of cash that banks must set aside as reserves three times since November to boost liquidity and spur loan growth.
Lenders in Beijing started offering mortgages to first-home buyers at or below the central bank’s benchmark rate in February, according to Bacic & 5i5j Group, Beijing’s second-biggest real estate brokerage.
The eastern city of Wenzhou led declines with a 12.3 percent slump in values from a year earlier, while Beijing dropped 1 percent and Shanghai prices declined 1.3 percent, according to data released by the statistics bureau today.