China expects real estate slowdown

BEIJING: Huge profits enjoyed by China’s real estate market for the past 10 years have come to an end due to tightening policies and weakening demand, state media reported Wednesday. “The era of huge real estate profit-taking is over,” the Beijing News said, citing an economic review released by the National Bureau of Statistics. “House price growth is losing momentum as a series of policies on money, land and taxation that target the real estate market has dampened demand and squeezed bubbles in the sector,” said the review, according to the report. China’s central bank raised the amount of money banks must keep in reserve five times in the first half of this year to a historic high of 17.5% in a bid to cool the economy. The State Council, or cabinet, ordered local governments to take back land that had been sitting idle for two years to curb bubbles in the housing market. afp

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