In mid-April, when the government started taking stiff, unprecedented measures to prick the housing bubble, quite a few domestic lenders put up a brave front claiming they could stoutly bear even a 30-percent decline in property prices.
The property boom in China isn't a bubble because it is supported by "solid" demand for residential housing.
While portions of the real estate market such as high-end apartments are overheating, demand for residential homes will remain robust as rural Chinese migrate to bigger cities.
This property has not overheated and the demand for this property is very, very solid.
The recent fall in trading volume and slower growth in prices was largely a result of the measures the government had rolled out since April, and the rising trend in China's home prices has been curbed initially.
Property prices in China's 70 major cities were up 12.4 percent year-on-year in May, but experts said prices would fall in the following months as the number of transactions decreases.
The latest government policy to tighten second-home purchases is expected to further cool the housing market, but experts said it might be difficult to implement due to the independence of the country's housing registration and banking systems.
A government decision to usher in property tax reform gradually, rather than at once, has spooked the stock market, already down 20 percent this year.
China's property stocks are becoming more attractive after recent declines, Citigroup Inc analysts Markus Rosgen and Elaine Chu said in a report distributed today.
China's booming housing market is a bubble, evidenced by a series of statistics and the actions the central government is taking, an economist said in Shanghai on May 29.
Uncertainties about Beijing's property tightening cast a shadow on the recent gains in the A-share market as investors worried that the government may roll out more stringent measures if the current policies are not effective in cooling property market, analysts said.
Economist sees bubble in housing market
The price of green gram has risen almost threefold since last year to more than 20 yuan a kilogram. Among other things, a food therapist's promotion of the bean as having a miraculous effect on diseases such as cancer is said to have contributed to the hike in its price.
The A-share market is apparently "between scenarios". Last week, it plunged after tough action against property speculation - first by the central government in Beijing and then followed by State-owned banks and key local governments.
The soaring housing price in Beijing has drawn the attention of Fortune 500 CEOs, with some claiming it has damaged the capital's economic health and forced university graduates out of the city.
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