Existing home sales in Beijing fell 38 per cent in February while existing unit sales fell 64.2 percent. The average price of existing homes in Beijing fell 4.6 percent.
Rentals were not immune either. Volume decreased 10 per cent in February resulting in a 7.9 percent decline in rents.
Officials said it was too early to say if the drop in existing sales resulted from measures to cool Beijing’s overheated property market.
ยป Sales, prices drop on BJ 2nd-hand houses – China Daily, 12th March 2010.
It will be interesting to see if asset price deflation will be significant enough to dampen the economic growth of China in the short term, and what implications this will have Australia’s economy and house price bubble.
Whilst I’m sure China will be fine in the medium to long term, any short term hick ups could push the western world back into its slump.