DTZ warns of oversupply in China's property market

Published: 15 Jan 2009 00:00:00 PST

Jan. 15, 2009 (China Knowledge) - China's property market may face challenges from oversupply this year, the U.K.-based property consultancy company DTZ Holdings PLC said in its latest report.

According to the report, the unsold residential properties in nine Chinese cities, including Shanghai, Beijing and Guangzhou, have amounted to 38 million square meters.

The inventories in the first-tier cities will be reduced in about six to seven months, based on the current transaction volume per month, while it may take 12 to 16 months for those in second-tier cities.

Currently, there are around 3.02 million square meters of residential properties unsold, and it may take four months for the city to take up reserve, said DZT.

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