China Property Market Falls Further, Domino Effect Unlikely: Daily

China's real estate market has been on a downfall and it may be difficult for housing transactions in most cities rebound even during the upcoming week-long National Day holiday, when more consumers purchase homes, said the China Youth Daily citing industry insiders. The prices of preowned homes in many cities have been falling and developers reduced land purchases in recent auctions, signaling bearish outlook of the property sector, the newspaper said. But the current declines in home prices can be controlled and a "black swan" incident may not trigger a systemic collapse seen in other markets, where the banks and the housing markets were more intertwined, as China had placed strict policies limiting banks' lending to developers and home buyers, the newspaper said. MNI noted that the officially owned newspaper may be warning the government efforts to correct the real estate bubbles will contiue, while downplaying the impact on the economy from the troubled Evergrande Group, which is on the brink of a collapse partly due to the government's heavy-handed measures.