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Nanjing property transaction sees sharp decline

0 CommentsPrint E-mail CCTV, January 21, 2010
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In Nanjing, sales of property have also seen a sharp dip in the last few days. One reason is prices that are still, in most cases, beyond the means of an average person. Local authorities say prices are being propped up artificially by developers who are still splurging on land purchases and refusing to build.

Business has been poor for property developers in Nanjing. But with prices still high, prospective buyers are few and far between.

A house-buyer said, "The newspaper says almost all prices are above 20 thousand yuan per square meter. That's far beyond what we can afford."

Only 7 units were bought on January 17th, far lower than Nanjing's daily average of 250 units. Just a month ago, that number hit close to 500 units.

However, land transaction is still booming in Nanjing. On January 8th, a parcel of land was sold at 16 thousand yuan per square meter, setting a new record high in the city. According to the Nanjing Bureau of Land Resources, only 20 percent of land held by developers is actually being used.

Wang Hailong, director of Nanjing Bureauof Land Resources,said, "If we find out that the developers have not met standards to build on the land, or are hoarding it, we will take back the right of land use or charge them with a fee for leaving land unused. That land is meant to be used for building houses."

Experts say some property investors are beginning to exit the market as a result of the central government's tightening polices. However, house prices are still rather high. They forecast the property market will stay slow until the Spring Festival which falls in February.

 

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