Breaking News - Dangers lurk in Chinese real estate bubble
The rise of the real estate market in China has caught the Central Government’s attention over the past two years. In late two thousand and seven, the State Council passed a series of legislation to suppress intentional manipulation of the real estate market, which saw a subsequent fall in property prices.
The market currently faces the bubble burst, with potential dangers threatening stability in society.
The cost of housing in some coastal and inland cities also face undesirable outcomes. In large cities such as Beijing and Shanghai, the market has lagged considerably, and property sales in Shanghai this year are fifty percent lower than a year ago.
According to reports in The Economist, the National Development and Reform Commission has not been completely open and reliable in its disclosure of statistics, with regard to the falling housing market.
Although real estate developers have attempted to implement various promotional campaigns, but demands in the market have not improved. On the contrary, the trend could spark a pricing war between companies, and lead to a general decline of property values.
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