A country road in Dezhou, in China’s northern Shandong province. Property purchases by residents of a nearby village drove up prices in downtown Dezhou from 4,000 yuan per square metre at the beginning of 2018 to more than 8,000 yuan by year end. With provincial governments around China scaling back slum redevelopment plans and cutting back on cash compensation in 2019, property in cities like Dezhou will become even more unaffordable, according to a prospective buyer. Photo: AFP

Declining home sales in smaller Chinese cities during Lunar New Year point to longer term troubles

  • Housing market in tier 3 and 4 cities hit by removal of government subsidies, general lack of demand
  • Slum redevelopment plans were single largest driver of property boom in 2016-18 and reductions could hurt growth
Topic |   China property

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A country road in Dezhou, in China’s northern Shandong province. Property purchases by residents of a nearby village drove up prices in downtown Dezhou from 4,000 yuan per square metre at the beginning of 2018 to more than 8,000 yuan by year end. With provincial governments around China scaling back slum redevelopment plans and cutting back on cash compensation in 2019, property in cities like Dezhou will become even more unaffordable, according to a prospective buyer. Photo: AFP
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