Friday, November 11, 2011
Property Prices Falling
However, there are still plenty of such loans outstanding to smaller trading firms in copper and steel, exposing banks and traders to the risk that the once-frothy property market could start to see a serious correction. The property market, once a favorite of speculators, is now starting to see prices fall and, with them, revenues for those who had invested in developments, impacting the ability of some investors to repay their loans. Some housing projects in Shanghai have already lowered prices by around 30 percent in recent weeks and some developers have run into problems repaying their debt, according to local media reports.