China's Real Estate Sector

[Randy W]

from the Global Times

 

Slowdown seen in real estate sector

 

http://www.globaltimes.cn/Portals/0/attachment/2011/e8e89308-7564-477e-8d13-bece036c2d94.jpeg

 

China's real estate sector is cooling and profit margins for developers will get thinner in the future, experts said Tuesday, after several major developers reported slower growth in 2013.

 

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Along with the slower profit growth, there has also been news that some companies in the real estate sector are lowering prices in order to boost sales.

 

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Experts said that the days when developers could reap massive profits are long gone, and margins in the sector are falling to a more reasonable level.

 

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As well as declining transactions and cooling growth, there have been suggestions that the sector may face a more severe downturn in the future, especially in some third- and fourth-tier cities where oversupply has become a serious problem.

But experts noted that a meltdown in the sector is unlikely and that it will remain relatively stable. First-tier ­ci­ties will see housing prices continue to increase this year, and the market will also gradually consume the supply in lower-tier cities, Hui said.