A market that's not such a hot property

By He Na (China Daily) Updated: 2014-06-09 07:29

According to Chu Meiting, who owns a real estate agency in Changchun, the capital of Jilin province, local prices have remained stable since the start of the year, but, influenced by reports of the decline in property prices in other regions, many potential buyers have elected to sit on their hands and bide their time.

"We employed 16 consultants in March, but six have now left. It's natural that people will leave when the market is bleak. I have been working in this field for more than a decade, and I am used to the fluctuations," the 41-year-old said.

"I don't know about other places, but in Changchun all the real estate agents work on commission, so their only income comes from selling property, which means I don't need to pay them if they don't sell any houses or apartments. I own my outlet, and the maintenance costs are low, so no matter how bleak the market becomes, I won't close," she said.

"In Changchun, where land is limited and demand is stable, house prices won't fall too far, and they even may rise, although very slowly. But for houses in the suburbs of tier-three or four cities, it's very hard to estimate prices," she added.

Liu Wanjin, 39, who works for an insurance company in Changchun, had planned to buy a house close to the middle school his daughter will attend starting in September.

"Our home is too far from the school. If we buy a house closer to the school, we'll save a lot of travel time, but houses in school districts are really expensive," Liu said after visiting several available properties.

"My relatives have persuaded me to rent a house near the school for several months because they read reports that house prices are falling every day," he said.

Market malaise

Statistics from the Beijing Municipal Commission of Housing and Urban-Rural Development show that the number of second-hand house transactions in April was 7,616, a decline of 14.8 percent from March.

Not only is the second-hand house market in a gloomy state, the prospects for newly built homes are also looking bleak.

Of the 70 major cities surveyed by the National Bureau of Statistics, eight reported a month-on-month decline in new-home prices in April.

A survey released by the China Index Academy shows that the average price of new homes in 100 major cities declined by 0.32 percent in May from April, to 10,978 yuan per square meter, the first drop since June 2012. Prices fell in 62 cities and were unchanged in one. The biggest monthly fall was in Shantou, Guangdong province, where prices fell by 3.64 percent in May compared with April. Meanwhile, a poll conducted by the real estate services provider E-House China Holdings Ltd showed that the prices of new homes in 288 cities fell 0.03 percent in May from April, marking the second successive month-on-month decline.