Topic: Chinese Real Estate Market Slows
The Chinese property market carried its downward trend into the fourth quarter of 2011 after three consecutive months of falling prices. Data from the China Real Estate Index System indicates price drops in Beijing and Shanghai as the government continues to battle rising inflation.
Tight lending conditions, government-imposed buying restrictions and a slowing economy are all contributing to an increasingly troubled housing market. A shrinking mortgage market and lower rental yields in major sectors are more evidence that the country may be in for a sustained period of underperformance before seeing improvement.