After the housing frenzy in first-tier cities, a new wave of property development frenzy can now be seen in the second-tier cities, as a result of which the authorities are under immense pressure to regulate and tame the property market in the second-tier cities.

The research team at ANBOUND Consulting is of the view clearly this has something to with the local governments and the state-owned enterprises.

The property price at the second-tier cities will probably remain high for a long period but the crowding out effect on the real economy will deepen further and this is not beneficial to the competitiveness of the second-tier cities in the long run.

It is highly possible that the Developers that have bid the land at high price will suffer considerable loss.