It may sound somekind of unimaginably queer that just soon after the national economy got over the financial economic crisis that the real estate market trapped in hot misery. Then to curb the investment speculation, the cenral government raised the down payment on second-home mortgages to at least 50 percent from 40 percent on April 15th.

Two days later, the State Council said in a notice that banks should suspend loans to buyers of third or more homes. This triggered strong “wait-and-see”sentiment among the potential buyers since the detailed guidelines have yet to be released by the local watchdog in Shanghai.

While the developers postpone the unfinished new buildings’ opening date or sell the new homes on discount prices, the transaction volumes of the second-hand homes shrink deeply by 50%. The listing prices seem to be more negotiable as more owners want quick returns and can’t afford further decline. More agents get out to the streets with property billboards of conspicuous promote price to lure the potential buyers of rigid demand.