Just ten days ago, Li Yang, a company executive in Beijing, felt really excited about grabbing an apartment among over 2,000 potential buyers. But now, he is wondering if he should break the contract with the property developer.
The government's intensive launch of tightening property policies in mid-April has led millions of potential home buyers to adopt a wait-and-see attitude, leading to a plummet in property sales and a slight drop in the prices of some suburban projects. But a large-scale price drop in the country's key cities is unlikely to happen until the second half of this year, industry experts say.
Li Wenjie, general manager of property agency Centaline China (North China region), said the property price slide will occur in the third or fourth quarter this year after a fall in transactions in both the new and pre-owned home sectors. He expected the property price to drop 30 percent in key cities.