It wasn't clear at the outset whether a gathering of real estate types in Beijing this week was a property conference or a self-help group for developers seeking moral support.
Real Estate Investment World, a coming together of Chinese property companies large and small along with stake in the real estate game at Beijing's upscale China World Hotel, produced collective lament over the state of the market as the central government＊s two-year effort to wrestle prices down is starting to hurt.
China＊s property prices and transaction volumes have been declining since the fourth quarter of last year due to the government＊s property tightening measures, with sales hit hard by curbs on credit and home purchases.
Last week, we heard it from the top that the end of market curbs is not yet in sight. Premier Wen Jiabao said China＊s property prices are still far from reasonable and the country cannot afford to relax its property controls.
While property controls put in place over the past two years have scored successes, relaxing them now would cause ※chaos§ in the property market, the premier said.
(Of course, the refrain from each participant who dared to speak up was that his or her company was OK, thank you, though everyone else seemed to be hurting)
Property developers, especially the smaller to midsized ones, can＊t get bank credit, and they are seeing a slowdown in sales, said Jim Lam, CFO of developer Top Spring International Holdings.
If a developer has a project in a city it hasn＊t had a presence in before, and wants to borrow money from a local bank for the first time, chances are slim the bank will comply. Banks are more willing to service their existing customers first amid tight credit conditions, he said.
Trust company loans 岸 once a handy alternative to bank credit 岸 are also coming under official scrutiny.
The cost of getting a trust loan is ※prohibitively high,§ said Nathan Lai, a director at Xinyuan Real Estate, a developer based in Zhengzhou.
Property developers are now looking around for other financing channels, including starting real estate funds, preferably with other people＊s money.
Sino-Ocean Land Holdings Ltd. plans to launch a real-estate fund this year, said Li Zhenyu, the company＊s vice general manager, adding the fund could be valued around 1 billion yuan($159 million).
Brokers are now sniffing around and knocking on doors of real estate funds, offering potential deals. But they may have to wait a bit longer it seems. Fund managers at the conference said the deals just aren＊t desperate enough yet.
在中央政府执行了两年的房价调控政策开始产生重压之际，中国房地产投资世界峰会(Real Estate Investment World)的与会者集体哀叹当前的楼市状况。峰会由中国大大小小涉入房地产市场的公司参加，地点在北京豪华酒店中国大饭店(China World Hotel)。
开发商莱蒙国际集团(Top Spring International Holdings.)的首席财务长林战说，房地产开发商、特别是中小开发商拿不到银行贷款，销量正在放缓。
河南省郑州市的开发商鑫苑置业(Xinyuan Real Estate)董事Nathan Lai说，信托贷款的成本太高，令人望而却步。
远洋地产控股有限公司(Sino-Ocean Land Holdings Ltd.)副总经理李振宇说，该公司计划在今年成立一只房地产基金，估值可能在10亿元（合1.59亿美元）左右。