A credit crunch, dwindling transactions and falling prices in some hot markets are adding up to trouble for the Chinese real estate industry.
Although official figures show investment in property rose 32 percent in the first four months from a year earlier, developers are worried as bank loans dry up and the cost of tapping other sources of funds rises.
Falling home sales are a particular threat to developers, who typically rely heavily on cash from the sale of unfinished projects to pay for operations and expand.
Wednesday, June 25, 2008
Wednesday, June 11, 2008
Chinese home buyers learn to borrow
Home buyers in China used to pay the full price for a house upfront. But a new generation is following a pattern familiar one seen in the U.S. a few years ago -- they're borrowing more for real estate. Lisa Chow has more.
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