Housing prices in 5 typical PRD cities have slumped by over 30% in the last 3 months, according to interviews reported by a journalist from Huaxia Times. The interviews took place in desirable residential districts of Guangzhou, Shenzhen, Foshan, Huizhou, and Dongguan.

Sharp Depreciation in Dongguan

A sales woman of a newly built apartment project said that, there was a promotional activity on April 26th. If an earnest money of 10 thousand Yuan was paid in advance, 40 thousand Yuan could be subtracted from the amount in the process of purchase. That is about 7% off.

At another purchasing project, a similar promotional activity was going on last weekend. Homebuyers could have 7% of the amount off after they paid 20 thousand Yuan, and a particular preferential price was offered to group buyers.

All House Prices Fall

The situation of house prices in Foshan is similar to that in Dongguan. Many newly built apartments are uninhabited, and advertisements for the housing market are everywhere.

Among those 5 cities, the house prices fluctuated most in Dongguan. According to a survey conducted by a journalist in Dongguan, most of the house prices downtown are between 4000 to 6000 Yuan per square meter. In the same period last year in Dongguan, the price was nearly 8500 Yuan per square meter.

Real Estate Investors Leave

House prices in Dongguan went up and down in 2007 because of gangs of real estate investors from Shenzhen, most have now stopped investing in Dongguan.