Royal Bank of Scotland has downgraded its rating of the mainland property sector to neutral from overweight as the market faces the risk of new cooling measures being introduced next year.
David Ng Ka-chun, the head of regional property research, said yesterday that most of the good news in the sector had already been reflected in the prices of mainland property stocks.
Although he did not believe cooling measures would be introduced this year, 'the opportunity for the government to resume cooling measures in 2010 will be bigger if the 8 per cent economic growth target is met', he said. 'The measures may not lower property prices immediately, but they could dampen the momentum of mainland property stocks.'
He expected property prices to rise further in the coming three months but said sales would fall.