China announced that controls on the property sector will continue in 2013. In order to prevent over-investment from property buyers, China’s Ministry of Housing and Urban-Rural Development said recently that controls on the property sector will continue in 2013.  This announcement was made amidst reports of the housing market’s steady recovery over the last few months.

The world’s second largest economy has put in place tightening measures since 2010 to curb its red-hot property sector and to ease increasing public discontent over its skyrocketing home prices. These measures include higher down payment and additional property taxes.

According to the latest annual Chinese wealth report from the Boston Consulting Group and China Construction Bank Corp., some 28% of Chinese investors faced huge losses in the real estate market in 2012. About 3% of these investors saw losses of more than 30%.

Ding Yi, a developer specialising in luxury mansions in Wenzhou in the eastern province of Zhejiang, said: ‘Those property investors who purchased houses after 2009 have to [incur] losses of more than 30% if they want to sell their properties now.’

However, most experienced property investors were not as severely affected as those with less experience, who certainly have ‘learned a lesson’, said Ding. He added that the market has cooled dramatically after the measures were put in place, suggesting that most investors nowadays are staying out of the property market.

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

The growing developing country debt burden and the special role of China

The International Monetary Fund (IMF) sounded alarm bells in December 2021, warning that 60 per cent of low-income countries are at high risk or already in debt distress, up from 30 per cent in 2015.

Bangkok to Host World Chinese Entrepreneurs Convention (WCEC) in June

According to Thai-Chinese Chamber of Commerce Advisor Lin Wei, guests will include Chinese nationals and members of civic and governmental groups from nations worldwide.

China continues to lead global e-commerce market with over $2 trillion sales in 2022

China accounted for over 37% share in the global e-commerce market, in terms of payments value in 2021. The country was followed by the US with $1.5 trillion, while the UK stood at a distant third with $292.1 billion in 2021