13 Jul 2010

Property boom in China now over?

8:59 am on 13 July 2010

Latest figures have indicated property market in China may have peaked after a government clampdown on speculators.

Property prices across 70 cities fell 0.1% in June compared with May - the first monthly fall since February 2009.

In April, the government introduced a series of new regulatory restrictions on the housing market that sought to restrict speculative buying.

These included: higher down-payments on house purchases, stricter lending rules for property developers and limits on the ability of investors to buy more than one home.

Meanwhile, separate trade figures showed exports surged, but imports lagged.

The BBC reports the data paints a mixed picture for the Chinese economy, which some economists and investors fear may suffer a sharp slowdown later in the year.