Jurong city is only an example of what has recently happened in the Chinese property market. The city is currently populated with unsold properties, towering developments, and construction that is being built as quickly as buyers are running out. Business Times SG reported that this is evidence of the effects of the various disputes China finds itself under.
The US-China dispute is only one of the many problems that the country's property market is reeling under. For sure, there are many new developments that are being built across the nation. The problem is that there doesn't appear to be anyone with enough money to buy them. Another case that shows this is Mr. Hu's experience. Since July, the agent hasn't been able to sell more than just a handful of properties.
It is not a problem, if only it did not weigh heavily on China's slightly embattled economy. The property backlog has also created a ripple effect on the worldwide economy. Sales in the property market have been going down steadily, and there are developers who are under debt. If they don't recover soon, they find themselves closing shop.
Cai Xin Global shared the opinion of a few analysts that have claimed China's hot property market isn't so hot anymore. Real estate developers have been shown trying to get through the media-christened "Copper September and Iron October," a play on what has traditionally been a strong September and October months.
The government only has strong interests to protect its people from inflated prices and a difficult time finding properties for themselves. Analysts, however, have partially pointed out these policies as part of a series of problems that China finds itself facing. Even markets like Beijing, Guangzhou, Shanghai, and Shenzhen have found themselves unable to reduce prices for the less fortunate.
China is facing a combination of its economy slowing down, as well as properties having trouble getting sold, as a challenge. Speculations from the investors are only making it worse. No doubt the government will do everything in its power to help its citizens, who are only going to get caught in this situation.
China has always managed to stay on top of the situation, a reason why it was able to create its impressive economic drive. The government will have a lot of strategies to enact if it is to create another economic surge, despite the current situation.
