China's Fuzhou sees stable property prices despite fall in sales: Xinhua
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
A woman walks past a property poster outside luxury apartment blocks in central Beijing, China, March 15, 2016. REUTERS/Jason Lee
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
BEIJING (Reuters) - Home prices are relatively stable in the southeastern Chinese city of Fuzhou while sales have dropped significantly after further tightening measures, Xinhua state news agency reported on Tuesday, citing data from local property agencies.
Fuzhou, the capital city of Fujian province, was one of the most overheated cities this year. Official data showed home prices in Fuzhou soared 26 percent in the year to September.
The city introduced stricter policy measures during China's National Day holiday week, including requiring higher down-payments.
Sales volume for new homes is estimated to have since dropped 80 percent month-on-month, while that for second-hand homes dropped around 60 percent, Xinhua said, citing data from multiple property agencies.
"According to reports from our sales offices, sales have all suffered obvious declines," Cai Jun, general manager at Centaline in Fuzhou, was quoted as saying.
But prices have remained relatively stable, as developers who benefited from strong sales in the past have little incentive to lower prices.
"Previous experience showed that reducing the price doesn't help sales much," Xinhua quoted Wang Azhong, director at the real estate center of Fuzhou University, as saying.
"Instead, if you do so, people might be increasingly hesitant to buy."
(Reporting by Yawen Chen and Nicholas Heath)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Delta Air Lines (DAL) Announces Dan Csont as Vice President of Brand Management
- Turkish air strikes kill 19 Kurdish militants in north Iraq - military sources
- Turkish jets hit 39 Islamic State targets, kill four militants - army
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!