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2014 to bring home price divergence: Forum

Updated: 2013-12-27 17:23
By Hu Yuanyuan (

Property prices in China will see greater regional divergence in 2014, with risk of price drops growing in second-tier cities, industry experts said at a forum.

"It is a time of further divergence in China's real estate sector, whether in cities, enterprises or products," Gu Yunchang, deputy head of the China Real Estate and Housing Research Association, told a forum held by

Regional divergence has been evident lately, which is different from the housing boom in 2009-2010.

First-tier cities are generally facing a lack of housing due to tighter controls. By contrast, new housing supplies increased faster in smaller cities, where price increases have been modest.

Although first-tier cities saw a strong price rebound in 2013, Gu said risks of fluctuations in those cities remain controllable compared with those in small towns.

Prices in China's major cities climbed in November, with the cost of buying a new home surging by more than 20 percent in Beijing, Shanghai, Shenzhen and Guangzhou, according to the National Bureau of Statistics.