Beijing Property Prices Collapse

The Business Insider ^ | 5-12-2010 | Vincent Fernando, CFA

[blam]

Beijing Property Prices Collapse

Vincent Fernando, CFA
May. 12, 2010, 3:26 AM

We've been waiting for tightening measures to hit the Beijing property market, especially after the city's real estate association itself said the situation was a bubble.

It looks like the government's clampdown is starting to bite, hard. Average Beijing transaction prices collapsed 31% month on month:

Capital Vue:

The average transaction price of commercial residential properties in Beijing for the week ended May 9 fell 1,790 yuan per square meter or 9.6 percent week-on-week to 16,898 yuan per square meter, reports The Beijing News, citing statistics released by Beijing Real Estate Information Network.

Compared with the week ended April 11, the average transaction price of commercial residential properties in Beijing plunged 31.43 percent to 7,744 yuan per square meter.

In the last weeks of April, the transaction volume of commercial residential properties in Beijing decreased by 10.34 percent, 11.39 percent and 30.82 percent respectively. Average transaction price was flat at between 22,000 yuan to 23,000 yuan per square meter.

Next up? Shanghai.

They're introducing further restrictions on property later this month, such as hiking taxes on owners of multiple properties, according to Shanghai Security News.

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How's The World's Leading Indicator (China) Doing? Economy Slowing, Market Crashing

Calculated Risk
May. 12, 2010, 7:09 AM

A follow up to a post two weeks ago ... keep an eye on the Shanghai index (in red). It appears China's economy is slowing.

This graph shows the Shanghai SSE Composite Index and the S&P 500 (in blue). The SSE Composite Index is at 2,622.67 mid-day - down about 300 points from 2 weeks ago.

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[GeronL]

Wasn’t there a big story about how great China real estate is yesterday or the day before?

lol