Fears Over China’s Property Market

The first fall in Chinese home prices in two years has crystallised worries of a messy end to a housing boom, but some analysts say fears of an imminent collapse similar to that in the United States after the sub-prime crisis are overblown.

The property market has definitely been slowing this year, and is cited as one of the main risks to the health of the world’s second-largest economy.

But high downpayments, low household debt, some government support – and expectations of more to come – have some experts forecasting the downturn will be short lived, with prices expected to recover as economic growth steadies in the second half of the year.


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