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China property prices to drop as inventories swell, StanChart research says

Posted on 09 September 2011

Signs of a bubble are surfacing in China’s selective tier-one cities, according to a Standard Chartered Bank research report. Prices are expected to stay firm in the tier one cities while a drop in prices are seen in tier two cities in the near future.
Rapid income growth (real income growth of eight percent to 10 percent) is helping support price increases in China’s real estate, bank’s analysts say. However, tight monetary policy and anti-bubble measures have put the squeeze on housing demand and rising inventory level points that may lead to price correction next year……………………………………….Full Article: Source


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