China property war sees prices slashed by up to 30% in a week.

[Prometheus Bound]

Price war starts on mainland
By South China Morning Post
Wednesday, 02 November 2011 16:41

HONG KONG: The first shots have been fired in a property war on the mainland that has already slashed prices by almost a third and could see them halved by next year.

The opening salvo in what agents and analysts say could be a long battle by developers to shift their stock of unsold homes got under way in earnest when four major developers cut prices on their new releases by up to 30% last week.

....Cao Jianhai, professor of economics at the Chinese Academy of Social Sciences, said on Monday he expected the price-cutting to be sustained into next year if the cooling measures persisted, taking home prices down by as much as 50% from their present levels.

....First to move with price cuts last week were China Overseas Land, Longfor Properties, Greenland Group and China Vanke, who released their projects at discounts of about 30% from previous launches or transaction prices in a nearby areas to drum up sales.

Signs that the price war was spreading then came when the Excellence Group announced it would release its Wei Lan Hai An project close to Huizhou at what it said was its development cost of 4,900 yuan per square metre this Saturday. The price is around 30% lower than the prevailing transaction prices in the area.

http://www.theedgeproperty.com/global-market-watch/8700-price-war-starts-on-mainland.html

[madrchsod]

1. sounds like the good old usa...

this was predicted several years ago.