Hefei at 'High Risk' of Falling House Prices

By | Dec 03,2016

A Chinese government think tank has identified 35 major cities as having overvalued property markets and said they face more severe risks of falling home prices than seen in previous property boom cycles.

The 10 most exposed cities were listed as Shenzhen in South China's Guangdong Province, Shanghai, Beijing and Tianjin, along with Xiamen and Fuzhou in East China's Fujian Province, Nanjing in East China's Jiangsu Province, Zhengzhou in Central China's Henan Province, Hefei in East China's Anhui Province and Shijiazhuang in North China's Hebei Province.

"Those overvalued property markets are highly likely to see a slowdown in price growth or even a downright price fall, for which we should be on high alert," said the National Academy of Economic Strategy, a part of the Chinese Academy of Social Sciences.

It warned in a report dated Wednesday that an "overcorrecting" property market would drag on economic growth and impair financial stability.

And it said that short-term housing policies should be improved to guide a property "soft landing."

Home and residential land prices have soared in many parts of China this year, prompting authorities to impose a range of restrictions on buyers and curbs on developers' ability to raise funds.

Shanghai and Tianjin, which were among a number of China's first- and second-tier cities that adopted extensive tightening measures during the first week of October, introduced fresh curbs this week in what has been dubbed the "third wave" of tightening measures.

The think tank report said the risk of falling property prices was higher than seen in 2010.

The market deflated in 2011 when the government introduced multiple curbs to tame soaring prices.

However, overall property risks at the national level are still "controllable," it added, citing reasons such as the availability of "many tools" to adjust the market.

原文地址: http://english.anhuinews.com/system/2016/12/02/007518435.shtml