China’s property market set for stability in 2017, experts say
A sharp decline in prices is ‘unlikely’ in the next 6-12 months, say Moody’s
China’s property market is likely to see a flat year in 2017 after authorities adopted stricter curbs on home sales in major cities, experts said.
October data has showed early signs of market cooling as the latest new restrictions resulted in significant reductions in transaction volumes and a contraction in the pace of price growth.
Moody’s expects nationwide home sales to be flat or slightly negative in 2017, against an already high base in 2016.
“Specifically, sales volumes will decline by around 5 to 10 per cent in 2017,” Kaven Tsang, vice president and senior credit officer at Moody’s said.
But the ratings agency believes a sharp decline in prices is “unlikely” in the next six to 12 months, given the relative low inventory levels in major cities.
We project a modest rise in selling prices that will partly offset the decline in transactions, Tsang said.
China’s total home sales by value rose 42.6 per cent in the first 10 months year on year, according to National Bureau of Statistics data.