Property prices have fallen sharply in Nansha, a district in Guangzhou in southern China’s Guangdong province, after a plan to establish a free trade zone in the area was aborted in June, China Business News reported on Tuesday.
Property prices in the Guangzhou district had been rising since August 2012, when it was upgraded into a state-level new zone, similar to Shanghai Pudong, with the average price climbing to 11,000 yuan (US$1,789) per square meter in 2013 from 7,500 yuan in 2011, according to the report.
However, the market has been declining since the central government shelved the district’s free trade zone application in early June.
Nansha’s property prices are expected to drop 20 percent as a result, Zeng Yingjie, a researcher with real estate agency CRIC, was quoted as saying.
Yuexue Property (00123.HK), a major developer in Nansha, has started to cut prices by as much as 3,500 yuan per square meter in one of the company’s projects, and is expected to implement similar cuts in the district, the report said.
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