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China property prices witness sharp decline; dips for 3rd straight month in July

Last Updated: Tuesday, August 19, 2014 - 10:27

Zee Media Bureau

New Delhi/Beijing: Property prices in China witnessed sharpest decline since January 2011, a daily newspaper quoting Chinese official audit data said on Monday.

The paper said prices in "64 out of 70 cities" in China have witnessed sharpest fall since January 2011.

It further added that the slump was also instigated by panic sentiment in the wake of anti-corruption investigations against officials who owned a huge chunk of share in the property market.

The anti-graft investigations against corrupt officials led to sudden sale of mid-range homes owned by them.

Meanwhile China's property prices slid for a third straight month in July, but shares in property developers -- many of which are index heavyweights -- evinced no particular reaction, rising in line with their broader indexes.

However, China Baoan Group managed to be the lead supporter of the CSI300 index's rise, based on ongoing speculation in the stock following June reports that it would reallocate its investments out of real estate toward new energy, analysts said.

Meanwhile China drew $71.1 billion in foreign direct investment (FDI) in the first seven months of 2014, down 0.4 percent from a year earlier and 17 percent lower month-on-month.

With Reuters Inputs

First Published: Tuesday, August 19, 2014 - 10:27
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