Chinese Real Estate Agencies hit by Slowdown

Submitted by CBSagar on Sat, 2008-10-11 18:49

Recently property transactions were down in Beijing, but the worst may have not come yet. Property agencies and brokers in China are the worst hit during this housing downturn as most of real estate developers sell apartments through agents. Hundreds of property agencies were closed in Beijing in last few months as real estate developers in China are also facing a liquidity crisis amid the housing slump and have to suspend some projects and cut jobs. Real Estate Agents are cautious about changing their jobs amid the impending global recession including in real estate industry.

This downturn comes as the growth of China's exports has slowed and stock markets have plunged. These events has resulted in what economists describe as a deceleration in growth, although at nearly 10% China remains strong, and unlike US sub-prime meltdown and credit crisis, weaknesses in Chinese realty market does not appear to pose a threat to the vitality or stability of the financial system. Nevertheless, it may take a couple of years for the housing market in China to stabilize and develop again. Meanwhile, consolidation and rethinking of business strategies should fill-in management thought processes in order to grow in this new world economy.

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