Real estate companies have started cutting prices to ignite sales in some cities amid high inventories and slower demand growth, Economic Information Daily reported Monday, citing market sources. One developer took 2,000 yuan (US$327.87) per square meter off the price of units at one project in in Hangzhou, Zhejiang province, while another developer in the city lopped prices by 6,000 yuan per square meter. A complex in Changzhou, Jiangsu, was discounted by as much as 5,000 yuan per square meter, the paper said. Zhao Luxing, an analyst with a policy research center under the Ministry of Housing and Urban-Rural Development, was quoted as saying that prices rose rapidly in 2013 but cities with high inventories and lower demand will be the first to be hit. But it is too early to say if the cuts are a market-wide trend.
– Contact HKEJ at [email protected]