Soufun predicts continued slump in China’s property prices

October 30, 2014

BEIJING - Vincent Mo, founder and Chairman of SouFun Holdings Ltd (China’s biggest real estate information website), is predicting that Chinese property prices will fall as much as 10% in 2014 and that this will continue well into next year, in what he generally describes as “an adjustment after the rapid increase in the past two years”. He added that prices will likely stabilise around the middle of 2015, and he expects the market to have “another hot cycle in one to two years”.

As citywide measures to ease property curbs failed to stimulate China’s slowing property market, prices for new homes fell in all but one city monitored by the Government in September – the most widespread drop in prices since January 2011 when China changed the way it compiles data.

After mentioning a 45% decrease in his company’s American depository receipts, Mo announced SouFun’s new strategy of changing “from a purely Internet platform to also a transacting, and a financial-services platform”.