Real estate prices start to fall

• Published 20 May 2010

A China Confidential survey of nine cities shows that prices are already starting to fall. We expect this trend to deepen in coming months, but there is no evidence yet to suggest this cooling will turn into a slump.

China's stock markets went into a tailspin on Monday this week, as investors apparently fell prey to fears that because real estate prices around the country were staying stubbornly high, Beijing may unveil yet more tightening policies. Our research shows this reaction to be at least partly misguided. According to a China Confidential survey in nine cities – conducted by researchers on the ground gathering concrete evidence of price movements – property prices are already starting to come down.

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China Confidential Funds, a new research service launched by FT China Confidential, is dedicated to illuminating the mainland fund industry. Our team of fund industry experts in Shanghai search out the interesting trends in fund performance, strategy, interactions with overseas funds, regulatory changes, distribution and management. We also use a proprietary system to track the emerging flows of Chinese money. Click here to find out more.

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