Contagion: 20% drop in china house pricesIf this keeps up it not only causes developer's bankruptcy but also homeowners with large mortgage "Huang Jun, a 25-year-old real-estate agent in Foshan, a city in the southern province of Guangdong, said hes seen prices for new homes downtown drop about 20% from a recent peak in March, to the equivalent of about $346 a square foot on average. Virtually all developers have offered discounts over the past two months, said Mr. Huang, whos worked as a local property agent for four years. Just like Evergrande, they must be under pressure to sell more flats to repay borrowings, he said. He said the discounts had attracted prospective buyers during the recent weeklong national holiday, but few sealed the deal. Most of them want to wait and see if the prices would go down further, he said, In China, most people prefer to buy apartments when prices are rising, not falling. Falling sales could create stress at more developers, potentially preventing some from completing existing projects or forcing them to scale back future plans, said Logan Wright, director of China market research at Rhodium Group. WSJ