China's new home prices stalled for the first time since February 2020 in September, official data showed, as the chill in the property market intensified amid tightening credit due to an ongoing crackdown on speculative investment
Tens of thousands of Chinese developers had borrowed heavily to build homes during a surge in the property market between 2016 and 2018. But they are now facing a liquidity crunch amid tighter regulations on fresh borrowing, leaving many projects incomplete."Many developers have recently been exposed to a liquidity crunch, leading buyers to worry about buying buildings that are forever unfinished," Zhang said.
Luzhou in Sichuan province and Dali in Yunnan province saw month-on-month price declines in seven out of nine months so far this year, the most out of all the 70 major cities tracked by the statistics bureau.In Taiyuan, the capital of northern Shanxi province, new home prices fell in six out of the nine months.
"Previously, just opposite my home, there was construction on a plot for nearly two years, and there were several work suspensions during that time."New home prices fell for the second month in Guangzhou, while Tianjin and Chengdu saw their first monthly declines this year in September. Prices in Beijing stalled.
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