Over supply and weak demand are being blamed for a significant drop in pre-construction home sales prices in Beijing. In September, the average residential unit price fell by 76 per cent year on year, according to the Beijing Real Estate Trade Management. A total of 2,788 pre-construction units were sold last month, the lowest monthly figure since 2005. It represented a drop of 29 per cent from August, and 42 per cent from July.
"It was really worrisome," Xinhua quotes Li Wenjie, General Manager for North China at real estate broker Centaline China. Traditionally, September is the busiest month for Chinese developers. Supply is strong, with residential buildings available for pre-construction sale in Beijing having risen 46 per cent since January.
House prices in Beijing increased 8.9 per cent year on year in August, but September represented the first monthly drop in 2008. Meanwhile,
in Shanghai, about 290,000 square metres of housing were sold in the
first 20 days of September, representing just 20 per cent of the
figure for the same 2007 period.
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