As the Chinese real estate crisis enters its fourth year,timber exporters have become increasingly concerned about market recovery. The downturn in China construction and timber demand was triggered by the financial crisis among leading property development companies. This resulted in contraction of building activity and large numbers of homes left unfinished. Consequently, consumer confidence and demand for new housing declined. Compounding this decline was increasing pessimism about future economic prospects. In August this year, the average sale price of newly completed homeswas down 7.2% compared to a year ago.Despite these challenges, there are some positive signs emerging. In August, the inventory of unfinished homes decreased by 12.7% from last year and sales of new homes have significantly outpaced constructionstarts, indicating that the oversupply of housing is gradually being reduced.