China property slows


Growth in the Chinese property market slowed last month as recently introduced government restrictions began to take effect.

The slowdown was the first drop that has been reported for three months and has been directly attributed to the cooling measures brought in during recent months.

According to Reuters, the growth rate of new construction starts measured by floor area almost halved on a yearly basis from 10.1% in April to 5.2% in May.

Chinese investors are increasingly looking inland since they have been restricted from buying in the main cities, therefore driving up prices in more remote, smaller cities with fewer buying restrictions.

“It’s been very obvious in the past two months that the buying demand has spilled over to the third- and fourth-tier cities,” commented Joe Zhou, head of research for China at real-estate agent Jones Lang Lasalle (JLL).

“[But] this kind of spill-over demand is at its peak, and probably will only last for one or two quarters.”

In May, Chinese authorities implemented new rules that required developers to publish accurate price information for new homes on sale. It also banned them from charging extra fees, hoarding unsold homes or reporting false information regarding property prices.

Some Chinese cities have also implemented additional measures such as price caps on new homes and introducing a holding period before reselling a property is allowed.

In addition, some banks in major Chinese cities have raised their mortgage rates – all of which has resulted in the price slow down.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

Foreign investors China Hong Kong

China property slows


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.