DIVING property sales in Chinese cities could spell the end of the bull run in the market and knock the Asian country’s economy hard, ING Investment Management warned yesterday.
Sales volumes in Beijing and Shanghai fell by 18 per cent and 17 per cent respectively in the first three weeks of April, prompting fears over the state of the market.
“This sharp decrease in real estate sales does not bode well for investment in property, or the wider Chinese economy, where this sector represents 20 per cent of GDP,” said ING Investment Management’s Maarten-Jan Bakkum.
“We expect property price dynamics to deteriorate more in the coming months.”
On top of that, surveys of businesses show demand slowing, indicating the economy is already slowing down even without a housing crash.