The property bubble in 14 Chinese cities is in danger of bursting, an NDRC adviser to the nation’s highest planning body has warned

September 17, 2013 Leave a comment

Property bubble fragile in 14 cities, expert warns
Tuesday, September 17, 2013
The property bubble in 14 mainland cities is in danger of bursting, an adviser to the the nation’s highest planning body has warned. Guo Shiping, consultant to the National Development and Reform Commission, claims to have predicted the property market crash in 1997, news portal 163.com reported. He said cities such as Ordos in Inner Mongolia, Wenzhou and those in Hainan have already slumped. Home prices in Ordos, which is also known as “ghost city,” have slumped more than 92 percent in nearly 1 years to 1,700 yuan (HK$2,153) per square meter in August from 22,000 yuan per sq m in March last year, Guo said. In Wenzhou, defaulting borrowers have surrendered their homes to banks for public auction, Southern Weekly reported. It added more than 10,000 units were involved. Home prices in Zhejiang fell for the 23rd consecutive month, official data showed. But property markets remained red hot in Guangzhou and Nanjing, which saw new projects sold out on the launch date. China’s new home prices rose for the 15th consecutive month in August, according to Soufun, the nation’s largest real estate information platform. The central government has noticed the trend and will continue to send inspection teams to discuss the situation with local governments, China Times reported.

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