Second-Hand House Prices Drop 10% in Beijing After Roll Out of Regulations
Yicai Global
/SOURCE : Yicai
Second-Hand House Prices Drop 10% in Beijing After Roll Out of Regulations

(Yicai Global) April 28 -- The price of some second-hand houses in Beijing declined by roughly 10 percent in the wake of recently introduced restrictions on real estate transactions, per media reports. Several brokerages have closed locations.

High-end second-hand property prices in eastern Beijing decreased significantly. A 285-square meter three-bedroom suite's listing price was dropped to CNY18 million (USD2.6 million) from CNY22 million, the Economic Observer reported today.

"We have a house owner with a monthly installment payment of CNY50,000, who has been unable to make the monthly payment," the person in charge of the area's second-hand housing brokerage said. "So, there has been a large price cut."

The average housing price in eight of Beijing's 13 districts has fallen, Lianjia Research Institute data shows. Prices in the Dongcheng, Xicheng, Shijingshan, Chaoyang, Fengtai, and Tongzhou fell 5.4, 3.8, 2.3, 2, 2, and 1 percent, respectively.

Real estate agency Fang Holdings Ltd. said it is closing some of its shops. The total number of closed stores is expected to surpass 300. The closures will be concentrated around Beijing.

"I used to sell commercial-title housing, and now I am going to sell the houses in Hainan." a Fang broker said.

If housing transaction volumes continue to slump, the brokerage will certainly close locations, Lianjia management said.

The Beijing government rolled out eight control measures over the course of 20 days in an effort to curb rapid price increases.

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Keywords: PROPERTY , Price , Housing Bubble