Residential buildings under construction at Tahoe Group Co’s Cathay Courtyard development in Shanghai on July 27. Prospects for Tier 1 cities have improved, while lower tier cities continue to struggle. Photo: Bloomberg
Opinion
Opinion
China won’t let the property market collapse but the heady days are over
- Given policy goals, we can expect more deleveraging to manage loan risks even as Beijing prioritises homebuyers and supports cash-strapped local governments
- But there will be no return to the ‘high leverage, high growth’ model that drove the sector over the past decade
Residential buildings under construction at Tahoe Group Co’s Cathay Courtyard development in Shanghai on July 27. Prospects for Tier 1 cities have improved, while lower tier cities continue to struggle. Photo: Bloomberg