Source: CCTV.com

10-22-2008 11:44

Property developers are doing across the country to boost sales and turn the tide around.

Insiders are stressing that the real estate market needs time to recover. Only when developers and buyers believe that the price has no more room to fall, can the property market warm up. 
Insiders are stressing that the real estate market needs 
time to recover. Only when developers and buyers believe 
that the price has no more room to fall, can the property 
market warm up. 

Nanjing's municipal housing department says October saw 34 new apartments being returned by their buyers. Together with those in the previous three months, the city now has a record of 174 returned apartments.

Insiders believe most of the people who did not go ahead with their purchase were actually investors, who lacked capital and lost confidence in the property market. Moreover, with property developers continuing to slash prices, many potential buyers are playing the waiting game.

One potential buyer said "I think we should wait for a while. I hope the government will issue more favorable policies for homebuyers."

And we are seeing a similar situation in Wuhan. Some developers are offering new lower prices of just 1,900 yuan per square meter. But prices in the downtown area are still high although there have been some discounts. But many are still waiting for them to fall even further.

One potential buyer said "The price is falling, I will think it over and find an apartment in the downtown area."

Rescue policies aiding the real estate market have been announced in 18 cities including Shanghai and Nanjing. But the effects have been limited. Experts say rescuing the property market is not the same as raising prices.

Li Guozheng, Real Estate Researcher said "Given the current financial situation, the real estate sector is a vital driver of domestic demand. Policies should focus on rebuilding confidence in the market. "

Moreover, prices have not been slashed across the board. For example, in Chengdu, some property developers have cancelled discounts which were offered during an earlier property fair. But some are still cutting prices. and that has left many buyers uncertain about what to do.

One potential buyer said "I don't know whether it is a proper time to buy, the price movement is not clear. I need more time to make up my mind."

Insiders are stressing that the real estate market needs time to recover. Only when developers and buyers believe that the price has no more room to fall, can the property market warm up.

 

Editor:Xiong Qu