Speculators dump Shenzhen homes as market weakens

May 08, 2014 09:18
Property speculators head for the exits in Shenzhen as the housing market weakens. Photo: Bloomberg

Speculators have started dumping homes on the secondary market in Shenzhen, Guangdong province, as cracks appear in prices, the China Securities Journal reported Thursday, citing local real estate agents.

The companies have held the homes for many years but are offloading them in lots of up to 150 units through real estate agents, reflecting their eagerness to exit ahead of a further decline in property prices, the paper said.

Transaction volumes have plummeted in property markets across the country. May Day holiday sales in Beijing dropped nearly 80 percent from the same time last year as buyers wait to see if developers cut prices to boost turnover, according to media reports.

Price changes are increasingly on the cards in cities with large property inventories, and those with slow population growth, analysts said.

They also expect China’s property market to enter a stable period after years of rapid expansion. Speculators are expected to be squeezed out of the market as tougher government policies take hold, the report said.

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