Sunday, November 30, 2008

Yuan Watch : Fighting deflationary expectations

11-30-2008 14:40
It may be too soon to tell, but the past week has seen some signs of revival in the real estate sector in Beijing. More people are hunting down good buys, although most are still holding out for what they hope will be lower prices in the near future.

According to a real estate website, the last week has seen a huge surge in the number of people signing up to check out what's on the Beijing market. More than 6,000 people signed up, and more than 5,000 actually turned up to view houses. The number is triple that from just a month ago.

Industry insiders say the renewal of interest is largely due to new supporting policies from the government.

Chen Zhi, Deputy Secretary-General, Beijing Real Estate Association, said, "This is mainly a result of recent cuts in transaction fees and lending rates."

Most of the property offered on are units located between the northern fourth and sixth ring roads. Many people are interested, but few are actually taking the plunge just yet.

Potential Home-Buyer, said, "I want to buy a house near the fifth northern ring road. But prices are still high. I hope they will drop to around 5,000 yuan per square meter."

"Although prices are more affordable right now, I'm afraid they will drop even more. So I think I'll keep waiting."

And it seems most who came to view available units felt the same way. 5 thousand may have turned up, but only 63 units were actually booked out.

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