Real Estate
China Unleashes Rapid Drop in New-Home Prices With Relaxed Curbs
- At least 10 cities relaxed, removed new home price guidance
- New projects in Beijing, Shenzhen have also slashed prices
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A price war is spreading across China’s new-home market, as local governments dial back on intervention and developers race to recoup cash.
In Beijing, a sudden 18% price cut in May at a mid-sized residential project on the city’s outskirts has forced adjacent new developments to follow suit, according to people familiar, who requested not to be named because the matter is private. Near the southern border, the Shenzhen government approved a 29% cut in unit prices for a complex compared with a year ago, according to other people familiar.