The Economic Observer recently reported on the current status of China’s real estate construction market, which has been the primary engine for the economy. The dramatic decline in investment in the housing industry is having a major impact on China’s economic growth. Even the largest company in this industry, Wan Ke, is lowering its sales projection to half of the planned level. According to China Index Research Institute, in November and December of 2011, national land sales declined 47 percent each month. Starting this year, residential new construction growth was 0 percent, and 90 percent of the housing companies downsized or stopped their land purchases. Most of these companies are prepared to lower their prices. However, it is expected that even lowering their prices will not improve their sales volume. No one is optimistic about the near future.
Source: The Economic Observer, March 17, 2012
http://www.eeo.com.cn/2012/0317/223026.shtml