China's Property Market Woes Accelerate in July

China's Property Market Woes Accelerate in July

Residential News » Asia Pacific Residential News Edition | By Michael Gerrity | August 19, 2014 3:48 PM ET

China's property market saw a further decline of property prices in July, the third consecutive monthly decline in 2014.
China's home prices also fell nationwide, not just in a few select markets.

During the month of July, 64 of the 70 cities that were surveyed by the National Bureau of Statistics reported declining property prices. This represents the biggest monthly mass-market decline since records began in July 2005. On average, property prices fell 0.9 per cent between June and July, the sharpest tumble in three straight months of declines.
See related story: Chinese Cities Roll Back Real Estate Curbs as Cracks Appear
Developers also scaled back on making new property investments, prompting some to predict further financial problems and slowing economic growth for the balance of 2014.
With falling home prices in China, property developers withdrew from making new property investments. Property investments rose 13.7 percent in the first half of the year, down from 14.1 percent in the first half of last year. As of the amount of space sold in July, China reported a 16.3 percent decline, down from a 0.2 percent drop in June 2014.
China's economy grew by 7.5 percent in the second quarter of 2014, up from 7.4 percent in the first quarter of 2014.
Yet several analysts believe that the Chinese Central Government could step further into the property market later this year to stabilize and aid the market in a needed recovery.

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