S & P: China's first-tier city prices will fall 10%

In the next 12 months, the main first-tier city housing prices will likely fall from the current level of 10%, if the economic growth slowed sharply and interest rates rise sharply, house prices may even fall 20% "China entrepreneur Net" rating agency Standard Poole recently issued a report that the next 12 months, the main first-tier cities in the price　　%, as the government may continue to introduce measures to cool the market, resulting in uncertainty and increased sales of new projects.　　The report, titled China's government's tightening of market controls to make the real estate industry more difficult, also notes that if growth slows sharply and interest rates rise sharply, house prices may even fall by 20%. For developers, the agency expects developers to respond more effectively to current challenges than the 2008 market downturn.　　Many developers have the right liquidity and have already achieved most of the 2010-year revenue-recognition targets, reducing the pressure to drop prices sharply in the short term. The agency said this year's Central property market regulation aims to prevent a sharp rise in house prices and increase housing supply for low-income people to ensure social stability.　　A series of policies aimed at curbing the demand for investment and speculative buying, encouraging newly-bought buyers.　　According to the report analysis, the recent central government has again stressed the implementation of land hoarding developers punitive measures and increase the low-income housing supply commitments, is the 8-9-month property market "warmer" response. In addition, the S & P believes that lots are critical. BEIJING, Shanghai, Shenzhen, Guangzhou, four first-tier cities in the housing market situation is also very different; the difference between first-tier cities and some second-tier cities is even greater.　　The government's tightening policy has recently focused on the investment needs of the first-tier cities to push up the real estate market. S & P Report: "Chinese government strengthens market regulation to make real estate industry Outlook difficult" Download full text