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Investors rush to return properties in cities

By Hu Yang (chinadaily.com.cn)
Updated: 2010-04-29 14:41
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As new policies released by the Chinese government are effectively cooling down the real estate market, a rush to return purchased properties are emerging in many major cities, mainly led by speculators, the National Business Daily reported on Thursday.

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In Shanghai, many home owners returned apartments to developers as the new stringent mortgage policies cut their lending channels. According to a secondhand house agency, about 40 percent of signed deals in the city's central area have been canceled.

The southern city Guangzhou saw 105 apartments returned from April 15 to 27, according to the city housing regulator's website, and on April 27 alone, 69 apartments were returned. Long Bin, chief analyst of realty group Hopefluent, said the cancellations are mainly in areas that have investment potential.

Similar trends were seen in cities such as Ningbo and Hangzhou.

Many industry insiders fear that more property returns will follow in the future as property prices are believed to fall into a further slump.

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