Beijing (CNS)--Home prices in Beijing averaged 14,127 yuan ($2,180) per square meter between January and May this year, about 4.8% lower than in 2010.
Experts predict that due to the government's home-buying restriction measures, the second half of the year will see an actual price cut.
Currently, most speculative investors have been frozen out of the market, and around 90% of the transactions were made by home buyers with actual demand. The proportion of local buyers increased to 91%, up by 4o percentage points than before the new policy was implemented.
Home prices in Tongzhou and Miyun districts have witnessed a sharp drop of 3.5% and 18.8% respectively, while Daxing and Yaqing remain unchanged. However, the Central Business District (CBD) and Shuangjing in Chaoyang District are still going through a hot property market with prices having risen by 5.7%.
The supply of commercial and indemnificatory houses will increase in the second half of the year, and prices of commercial houses will plummet, said Hu Jinghui, vice president of Basic-5I5J Property Agency. He added that home prices will fall back by 10%-15%, to a level comparable with the time before the "two sessions" on March 15 last year.
