The central government of China is boosting the ailing property market by implementing rescue measures including lower property tax for first-time buyers, reducing down payments and lowering mortgage rates.
Though most property developers welcome such measures as interim solutions, they doubt their imminent effect on overturning the poor market sentiment because homebuyers still lack confidence and are concerned that property prices might drop further in the foreseeable future.
Property developers hope to see more concrete policies initiated by the government to address the need of a group of affluent buyers in the market.
Claudia Cheung Man-wan, corporate affairs director and head of human resources at K.Wah International Holdings, said: 'As a property developer we would also like a more holistic range of measures in the coming phases, not only with more detailed guidelines for our better positioning and planning, but also an extension of the financially beneficial packages offered to more sophisticated homebuyers, both up-graders and investors at large.'
It is clear that potential buyers with strong financial backgrounds have cautiously changed their investment strategy during the global investment downturn.
Aloysius Lee Tse-sang, managing director of the commercial unit of Shui On Land, said: 'We see some local and overseas buyers who do not need financial facilities from banks buying property for long-term investment purposes. However, they are choosing properties based on quality and location.'