Summary Box: China's thin error margin on property

AP News
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Posted: Dec 05, 2011 11:37 AM

TOO HEAVY A HAND? As economic growth wanes, Beijing has begun easing tight credit policies meant to cool inflation but China's leaders are insisting there is no leeway for loosening curbs on the housing sector. There are concerns that the campaign to cool overheated housing prices may go too far.

EFFECTS ELSEWHERE: With growth heavily dependent on construction and related industries, the slowdown already is sapping demand for domestic and imported products and materials and dampening Chinese investors' interest in buying properties overseas.

REAL ESTATE REALITY: The curbs are just beginning to let some air out of the property bubble, the Communist Party newspaper People's Daily proclaimed that the "time for making easy money is over." Barclays Capital forecast that prices could drop by 30 percent before stabilizing once the government begins to ease the curbs it used to bring the market under control as prices shot out of reach of many city dwellers.