adminBEIJING. — China’s house prices are expected to grow just 3,1 percent next year, the lowest over a calendar year since 2015, a Reuters poll showed, with tightening policies continuing to cool the market even as some easing is expected to prevent a sharp slowing.
A further moderation in China’s frothy market would be music to the ears of Chinese leaders, who have been cracking down on speculative buying for nearly four years as prices soared in almost every city-tier while income growth lagged. But policymakers have also been walking a tightrope, careful not to sink the market entirely – a crucial growth driver directly impacting more than 40 industries — as the economy is also dragged by an ailing manufacturing sector and flagging consumer confidence amid a trade war with the United States.
“The market expectation about ever-rising prices has completely altered,” Cai Zhen, a researcher specialising in real estate finance at the National Institution for Finance and Development, a state think tank, wrote in a response to the survey. Daniel Yao, Head of Research, JLL China, says he expects China’s overall property policymaking to remain “tight” in 2020 although more monetary policy easing may be coming to rescue the economy amid strong headwinds. — Reuters.
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