China Housing Market: Sales of pre-owned houses cool in October

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Now for a look at China's pre-owned housing market. A fresh government survey of 70 cities shows that the sale of pre-owned houses cooled across China in October. The survey by the National Bureau of Statistics showed that prices have fallen as well. Song Yaotian has more.

Shilipo, near the east Fourth Ring Road and the Central Business District of Beijing has been a place with a vibrant trade in pre-owned housing. But real estate agencies here have been quiet lately with few customers.

ZUO YANFENG, STAFF MEMBER REAL ESTATE AGENCY "We've taken away many computers and the staffs have declined too."

Housing prices have also been fallen. Some homeowners have lowered their sale prices by five to 10 percent. But the decreases haven't done much for the market.

ZUO YANFENG, STAFF MEMBER REAL ESTATE AGENCY "There is a house that had a price of 3.1 million yuan before the National Day holiday. The house owner has since changed the price several times to its current price of 2.85 million yuan."

Other areas that previously enjoyed vibrant housing market have also seen a decline in sales. For example, only 88-hundred and 79 houses were sold in Beijing in October.

Things weren't any better in Guangzhou. A Guangzhou trade group said that sales of pre-owned houses dropped over 51 percent in November year on year. That was a record low for the past 33 months.

GUANGZHOU RESIDENT "I will not buy houses now because the prices might continue to drop considering the government's policies. Even if the price will not drop it will be stable at this price."

Experts say there is a strong wait and see attitude in the housing market. And China's policies to curb frenetic housing prices have had an effect on the market for second-hand houses.

Song Yaotian, CGTN.