Property market cools in China
Recently published information shows that at the end of the first quarter of 2012 the price of new homes in 20 main locations throughout china dropped by more than 6 per cent from third quarter results in 2011.
The number of property transactions also declined during the first three months of the year. The Spring Festival is traditionally a slow time for the Chinese property market and is expected to continue at the same pace in the next few weeks.
Government sources are pleased that the residential real estate market in China is cooling following strict new controls on property purchase and tighter financial policies. Officials are considering further policy amendments including the introduction of a property tax in more cities to influence local markets.
Several cities saw home prices appreciate in the first quarter and these include Beijing and Shanghai.