Real estate liquidity and the demand for houses is curving to second and third-tier cities of the country, according to the China Business News citing reports from JP Morgan Tuesday.
In 2010, sales volume of new houses in the eight first-tiers researched by JP Morgan decreased 31 percent on a year-on-year basis.
According to JP Morgan, about 85,000 square meters were sold in China last year, an estimated 4 trillion yuan ($606.34 billion).
The statistics, to some extent, illustrates the house need flow-out in the areas.
For JP Morgan, the year 2011 will experience a shrink of the real-estate industry, partly because of the central government's tight control policy. However, the squeezed credit conditions may speed up the consolidation of the industry.
