Chinese homebuyers snub government incentives as they bet on further price falls
Consensus among potential buyers is that prices will continue to slide and the measures may fall flat, property agent says
Analysts and potential buyers warn that the bearish sentiments might weaken the effectiveness of the stimulus measures aimed at reviving the stagnant property market
“The market sentiment is terribly weak now, and the consensus among potential buyers is that prices will slide in the coming months if homeowners are eager to get deals done,” said Qiu Lixiao, a property agent with Pacific Rehouse in Shanghai. “Any measure to encourage purchases of new and pre-owned flats may turn out to be a damp squib.”
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On August 8, Beijing municipality announced it would allow both local and non-local residents to buy new and second-hand homes outside the Fifth Ring Road, a major highway encircling the suburbs. The scrapping of the restriction was seen as a surprise and drastic step by the local government of China’s capital to support the real estate sector.