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Protests in vain as property market weakens

2014-06-05 14:16 Global Times Web Editor: Qin Dexing

A group of homeowners in Guangzhou, Guangdong Province, protested recently after property sales prices in their residential compound were reduced to as low as 9,800 yuan ($1,558.2) per square meter, down from a previous range of 16,000 yuan to 21,000 yuan.

Such protests - which have been known to turn violent - are becoming increasingly common as oversupplies compel developers to slash prices. But the vehemence is pointless considering the market's downward trajectory.

Many developers across China are being weighed down by excessive supplies and flagging demand. They have little choice but to lower their prices. Under the current circumstances, outcries from angry homeowners will do little to revive an increasingly sluggish market.

If conditions continue to sour, we should expect further cuts. Developers are surely prepared to do whatever it takes to minimize their financial losses and risk exposure, even if it means offering hefty discounts.

Old property owners have no right to expect unrelenting growth in the value of their homes. After all, no developer has ever signed a contract - as far as I know - promising never to lower prices.

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