New home prices in China slipped again in January, and existing home sales slipped even more, notching the steepest decline in nine years.
The latest unhappy numbers suggested Beijing’s efforts to shore up the tottering real estate market have not been successful and some of China’s biggest real estate companies remain on the verge of collapse.
The Wall Street Journal (WSJ) on Friday crunched the latest numbers from China’s National Bureau of Statistics and found new home prices dropped by 1.24 percent in January year-on-year, while used homes slid 4.4 percent. Prices were also down in December, but the trend is accelerating.
“Real estate has for years been a popular investment for people in China, and the slowdown in the sector has had widespread ramifications. Consumer confidence is near its lowest level in more than three decades, according to a government survey. The economy is suffering from deflation, slowing exports and subdued investment by private businesses,” the WSJ observed.
The real estate crisis is especially troublesome because China’s property market grew to an immense size during its boom years. Small investors came to see real estate as one of the safest bets they could make and young professionals migrating to fast-growing cities needed somewhere to live.
Well > they are Buying up everything HERE so they will be Fine !!!!!!