The average transaction price of commercial residential homes in Beijing fell 17.6 percent to 18,620 yuan in the first quarter of 2012 from the peak that was reached in 2011, due to a rising proportion of transacted homes being located outside the city center, reports Legal Evening News citing data from B.A. Consulting 5i5j.com.

According to 5i5j data, home prices located between Beijing's third and fourth ring roads fell only 0.3 percent in the first quarter from the 2011 peak, with some inside the third ring road up five percent.

However, housing prices between the fourth and fifth ring roads and the fifth and sixth ring roads plunged 25.6 percent and 20.2 percent, the largest declines in the city.

More than 80 percent of transactions in the first quarter were for homes beyond the fifth ring road, leading to the fall in average price.

According to Hu Jinghui, vice president of 5i5j.com, based on current trends in new home prices, there may be limited room for further price drops, while discounts on some popular developments have fallen to less than 10 percent

Source:capitalvue.com