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Expert says housing prices will drop 10% in 2011

By Ben Yue (chinadaily.com.cn)
Updated: 2011-05-30 14:01
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China's housing prices may decrease 10 percent this year as property developers are facing a shortage in capital, China Securities Journal reported on Sunday, citing Nie Meisheng, president of the China Real Estate Chamber of Commerce under the All-China Federation of Industry and Commerce.

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Nie said strict policies on property purchases and a tighter monetary policy this year have brought cash flow problems to developers. She said the government will not fund a bailout similar to the one in 2008, the newspaper reported.

She projected that property sales volume will decline 7 percent and sales value will decline 10 percent this year in China's 35 major cities, which took up half of the country's property sales last year.

Nie also said she believes the government won't impose a property tax on current home owners.

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