Will house prices in China fall further?

After a comprehensive fall in transaction volume, if the policy remains unchanged, even without interest rate increase, the residential property prices across the nation will experience an overall drop.

In May, affected by the new real estate policies, sales volumes of commercial residential properties in all major cities fell across the board, with a total decline of about 44%. Among them, Suzhou saw the largest month-on-month drop of 77.75%. The transaction volume of commercial residential properties in Shanghai fell to the lowest level in five years. After a comprehensive fall in transaction volume, if the policy remains unchanged, even without interest rate increase, the residential property prices across the country will face an overall decline. The main reasons are as follows: