The looming National Day holiday in October may be crucial for China’s real estate market. In an attempt to kick-start stagnating real estate sales, major cities will be holding real estate expos during the holiday, and buyers will be watching for future price signals.
This fall’s Shanghai Real Estate Trade Fair is widely expected to be the beginning of a new round of price cuts. In China, so-called “golden September and silver October” are a traditionally good season for the sales of all kinds of commodities. But in September this year, Shanghai’s real estate sales volume has continued to drop. In July, trading of newly built housing slumped by 69% over the same month last year, and the average price fell by 24% over the previous month, a record monthly decrease.
Major financial firms have begun to sell their Shanghai properties. Morgan Stanley plans to sell three property projects there and will discontinue its investment in Shanghai World Financial Center. Citigroup intends to sell its two apartment buildings in Shanghai, while Merrill Lynch is selling its project on West Nanjing Road.
