On February 16, 2014, dahe.cn published an article titled, “China’s Housing Prices Have Quietly Started to Slump; in Some Cities the Sales Volume Has Decreased 50 Percent.” China is facing an economic slowdown, overcapacity, local debt problems, and over-printed currency on the market (leading to inflation and soaring prices). In the next two to three years, the excess housing supply will be the biggest problem. Property sales have decreased in 9 out of 10 cities; some cities’ property sales volume has dropped to half the volume of the previous year. Many banks are preparing for the worst as they predict a drop in housing prices is just around the corner.
Source: Dahe.cn, February 16, 2014
http://news.dahe.cn/2014/02-16/102636587.html