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Beijing Daily: Half of New Housing Projects Had Zero Sales

Beijing Daily recently reported that sales of new housing projects in the city of Beijing have nearly come to a standstill. According to the Beijing Real Estate Trade Management Network, in 10 out of 21 new housing projects that are on the market, zero contracts have been signed since the beginning of this year. Among all new projects, the rate of accumulated contracts signed so far this year is only eight percent. Last year that same number was 50 percent. Most of the projects that have had no sales are high end luxury products and apartments that are maintaining high pricing strategies. Experts suggested that the market does not look like it is about to improve. Buyers are holding off on their spending plans in the hope that prices will drop further. Based on how rapidly inventory is increasing, an average price drop of 15 percent is expected by the end of June, especially for low end housing products.

Source: Beijing Daily, March 24, 2012