Source: CCTV.com

01-11-2008 11:37

Recently, transactions in the second hand property market have dropped dramatically. The trend continues in the new year. A large property agency in Beijing said it has closed 50 stores.

Recently, transactions in the second hand property market have dropped dramatically.

Golden Keys is the second hand property agent with the most stores in Beijing. Hit by the recent sluggishness in second hand property transactions, 50 of its stores are due to be closed.

The company said the spike in house prices and the government's newly issued policies are major factors contributing to the market's slowdown.

Fu Yan, Vice General Manager of Golden Keys said "From March to October last year, prices of second hand homes saw fast price rises. The prices rose by as much as ten percent in a month. The shrinking of transactions is inevitable. Another factor is that the government issued a series of policies last year, making many people take a wait and see approach."

Other real estate agents have also seen a large drop in transaction volume. In the first week of the new year, business fell by 15 to 40 percent compared to a month earlier. If the drop continues by more than half a year, most of real estate agency stores will have to be closed.

It's not only in Beijing, Shanghai's second hand property market also shrunk. Xujiahui and Mengzi Road is the district in Shanghai where real estate agents are most concentrated. Now only two large agents are still maintaining their operations.

Editor:Xiong Qu