Hi Kiwimoa and Loyd,
Thanks very much for your inputs and insights. Please note that the news about some owners in some apartment complexes who are reducing their prices to sell was not an article or a story, it was indeed a report from Singtao Newspaper, one of the oldest and credible Chinese newspapers in town. They gave out and published the report which was based on facts and what had happened, just like news you see it from TV or the South China Morning Post. When I have time this week, I will try to translate the report to English so that everybody can read it.
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We are not talking about an immediate crush because it will take time for the real estate market to change or adjust and it could be the beginning of a new cycle and I can appreciate the fact that it may not affect all areas in the city and also another fact that most property owners have a substantial amount of equities in their properties so it makes it very hard for them just to sell it cheap or walk out unless it becomes really necessary but as you may agree with me that anytime if there was something major and bad happened, such as the triple disasters in Japan, it would create some kind of psychological fears and negative impacts on people's minds as evidenced by the continuous worldwide plunge of the stock markets but this effect could be short-lived or who knows?
You can verify about the increase of the mortgage and lending rates with your bank and other banks by calling them up just to proof if the report from the newspaper was correct?
During my past 30 years in real estate, I have seen downturns and real estate prices had gone down up to 50% of the original value in Canada; US and in Dubai, UAE about two years ago. I had lived and sold real estate as a realtor in these countries before.
But let's hope this trend is just a short-term adjustment but these days, most people in the world worry about the radiation leaks from the reactors than anything else and this situation is getting worse every day and out of control.