- notesonchina posted this
Now even the party mouthpiece Global Times, confirms it. The property prices in Beijing are spiraling down:
A local property company has been promoting its houses in Beijingxiangsu community, located near the East Fifth Ring Road, for 11,600 yuan ($1,825) per square meter and some units are selling for as low as 480,000 yuan, according to the Beijing Morning Post.
Figures from the Beijing Real Estate Trade and Management website show the average price of an apartment in this community has dropped from 22,500 yuan per square meter to 11,600 yuan, said the report.
Another builder, Vanke, has also reduced the price of several projects by 10 to 20 percent, indicating the housing market in Beijing is in a rapid decline, according to the report.
And at the end of the year, real estate developers have to settle their bills! So either, they are going to be bailed out by government or Chinese real estate companies will have to shut down in the coming months. Both of them will have dire consequences for already ailing Chinese economy.