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The Slow Decline of the Chinese Real Estate Market
November 09, 2011 08:32pm
While in the United States, the real estate values of residential homes in many areas seemingly plummeted overnight, whereas China is facing a steady decline that is slowly sinking their real estate market values.
Analysts are predicting the slow decline will continue, as demand for new residential homes is slowly lessening while inventory increases. This is in contrast to the sharp increase the Chinese real estate market faced incredible appreciation over the recent economic boom, especially in the larger cities.
Many feel the sharp increase has created the recent slow decline in real estate values, as inflation and income inequality has become a recurring problem. Residents of the major cities of China have many more economic opportunities and live a much more modern life, compared to the many rural areas that are still behind in growth and modernization.
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