Lawyer says rules on real estate market could be tightened up further

July 16, 2008 | BY

clpstaff &clp articles

Developers will struggle more as there is a lack of cash

Falling property prices and the squeeze on bank loans have quietened down the real estate market. But developers have been struggling, and these tough times might not go away any time soon.

“China's regulatory approach has already created difficulties for local developers,” said Kevin Wang, partner at Global Law Office. “But we haven't seen any sign that the government wants to loosen up the policy. Instead, we expect that more controlling steps will be done by the government.”

Some developers might leave the market as a consequence. Others, Wang said, could choose to merge with others to lessen their losses.

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