This doesn’t need to mean hard landing, but it means the state has to be that much more countercyclical to hold it all together, and they are facing what they consider a serious inflation problem.
Shanghai New Home Sales Plunge 77% Y/y to 6-Year Low, Uwin Says
Oct. 10 (Bloomberg) — Transactions fell to 85,400 square meters in the week ended Oct. 9, fall of 40% w/w, property consultant Shanghai Uwin Real Estate Information Services Co. says in e-mail statement today.
* New home sales in week of Oct. 9 28% lower than same period during 2008 financial crisis, Uwin chief analyst Zhijian Huang says
* New home supplies slumped 81% w/w in week of Oct.9
* Traditional “golden” September turns weakest month for home sales this year excl. Feb. and Mar.: Huang
* Situation to be more negative for developers should they continue to resist price cuts, and cuts may shift to plunging from gradually falling: Huang