China released its May national housing price data on June 15. Beijing and Shanghai had the largest fall in second-hand home prices among 70 large and medium-sized cities.
The price of second-hand homes in Shanghai fell by 0.8 percent compared with the previous month, the largest drop among cities surveyed, and Beijing fell by 0.6 percent.
Experts believe the fall in prices in the two megacities is a sign of a bad economy.
U.S.-based economist Davy J. Wong explained that the majority of Chinese investors have been limited to real estate because of limited investment channels under the current ruling regime.
He said that Chinese people in general believed real estate provides a better cushion against inflation and depreciation….