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Furnisher sees positive fallout from property slip

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Sandy Li

Chitaly Holdings, which owns the largest mainland furniture franchisee network, expects to benefit from a likely slowdown in China's real-estate market as authorities move to curb surging property prices.

The main-board listed firm believed the move could fuel home-buying interest if property prices fell to a more affordable level.

Chairman Jackson Tse Kam-pang said the measures may hurt developers' profit margins but consumers would be the winners.

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Mainland banks' tightened mortgage lending policies should not severely affect home-buying desires as many consumers opted for cash payments, he said.

'Owners will probably spend the money saved from home purchases on decorating their new apartments,' he said.

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Furniture sales would thus indirectly benefit from the measures, he said.

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